Budget and Policy Highlights

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Budget Summaries

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In This Section

General government

Human services

Natural resources

Education

General government: Operating

Our approach to the general government operating budget

Given the lack of resources available, general government investments in this budget are limited to only the most necessary, core functions of the government agencies within this section. Additionally, only modest, targeted additions are made where necessary to keep Washingtonians healthy and safe. Even with this extreme restraint, several reductions are required to achieve a balanced budget. Reductions in this proposal are focused on achieving greater efficiencies, and in some cases, removing programmatic funding entirely to maintain important spending in other areas of the budget.

New and sustained investments are concentrated in three areas: protecting health and safety, defending Washington against harmful federal actions, and maintaining core services for vulnerable populations.

$0M

For federal administration
litigation

$0M

For the Self-Insurance Liability Program

$0M

For Capitol Campus security

$0M

In services for victims of crime

General government: Operating investments

Department of Enterprise Services

Self-Insurance Liability Program

The Self-Insurance Liability Account (SILA) is used to pay tort claims, judgments, and settlements arising from general liability when the state is found to be wholly or partially negligent. There has been a steep increase in the number and payouts of tort claims in recent years following legislative changes and court rulings. As a result, the SILA fund has been in a continuous and growing cash deficit position.

Liability for the Department of Children, Youth, and Families (DCYF) has increased exponentially, primarily due to historical childhood abuse claims and increasing jury awards. In 2019, the Washington Supreme Court decided H.B.H. v. State, which defined the state’s liability for childhood abuse claims. In fiscal year 2019, the year of the ruling, 157 claims were filed against DCYF. In fiscal year 2025, 1,455 claims were filed against DCYF — an increase of over 800%. Agency insurance premiums have not been raised quickly enough to capture this dramatic increase in cases. The SILA fund, the account used to pay the awards in these cases, is facing a $1.3 billion–$1.4 billion shortfall this biennium.

To amend the deficit, this budget proposal will begin to resolve the negative balance in this account by increasing insurance premiums paid by state agencies. Additionally, a proposal to stand up an administrative panel to adjudicate historical claims against DCYF would create over $70 million in cost avoidance in the current biennium.

($955 million from multiple funds)

Capitol Campus security

Washington state maintains the largest capitol campus in the nation, spanning 486 acres and welcoming 400,000 visitors annually. Security of the state Capitol Campus is essential for keeping the public and state employee staff safe while protecting the historical assets contained in its many buildings. Additional funding ensures that the Security Operations Center is fully staffed for 24/7 monitoring of campus activity, as well as full staffing for the Public Compliance Space Team to provide incident response, mental health first aid, and crisis deescalation.

($2.9 million General Fund-State)

Office of the Attorney General

Department of Commerce

Office of Financial Management

General government: Capital

Our approach to the general government capital budget

Developing the 2026 supplemental capital budget requires navigating tradeoffs. Resources are stretched thin, and competing priorities are significant. In response, the budget emphasizes targeted, high-value investments instead of spreading limited dollars across many new ideas. The budget also funds a set of smaller projects that support local communities and keep state services effective.

Due to constrained capital resources, the Climate Commitment Account investments are directed to two core strategies: partnering with the Washington State Green Bank and supporting Tribal clean energy projects. This focuses scarce resources where they can draw in private-public partnerships, support clean energy markets, and strengthen resilience in communities across the state.

$0M

To maximize investments in clean energy projects

$0M

In support for Tribal clean energy projects

$0M

Local and community projects

$0M

For strengthening physical security on the Capitol Campus in Olympia

General government: Capital investments

Clean energy investments

Immediate needs at state facilities

Projects to directly benefit local communities

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Human services: Operating

Our approach to the human services operating budget

Caseloads in Washington’s social service programs are growing as costs of necessities such as food and housing continue to increase and our population ages. Recent federal actions have also shifted more responsibility to Washington, requiring increased state contributions to federal programs and changing eligibility requirements so that individuals lose access to federal programs and end up on state-funded programs instead.

In this environment, the budget takes steps to slow growth in some of the fastest-expanding areas while keeping the safety net in place. Governor Ferguson’s budget gradually tightens eligibility for long-term care programs and caps enrollment growth in the Working Connections Child Care program, while updating the base subsidy rates paid to child care providers so they better reflect current costs.

At the same time, the budget maintains existing state programs for cash assistance, food assistance, and health care subsidies. It invests in the health and safety of Washingtonians from the youngest children in the child welfare system to retired veterans.

$0M

To establish certified community behavioral health clinics, expanding mental health and substance use crisis services

$0M

To preserve services for vulnerable aged and disabled individuals at risk of losing Medicaid benefits under H.R.1

$0M

To maintain 24/7 call, text, and chat services at the 988 Suicide & Crisis Lifeline

$0M

To expand access to opioid use disorder medication for those in DOC custody

Human services: Operating investments

Department of Social and Health Services – Developmental Disabilities Administration

Department of Social and Health Services – Aging and Long-Term Support Administration

Department of Social and Health Services – Economic Services Administration

Health Care Authority (Medical Assistance)

Health Care Authority (Community Behavioral Health)

Department of Labor and Industries

Department of Health

Department of Corrections

Employment Security Department

Department of Children, Youth, and Families – Children and Families

Support child safety through targeted interventions

An increase in critical incidents, such as abuse- or neglect-related child fatalities and near-fatalities, is being driven by a range of factors, including the increase in complex, high-need child welfare cases and the presence of high-potency synthetic opioids (fentanyl) among babies and toddlers. To address this issue, funding for the Department of Children, Youth, and Families (DCYF) will go to:

Plan of Safe Care program: This program uses family-centered prevention plans, called Plans of Safe Care, to support birthing parents and infants with prenatal substance exposure. In five high-needs communities, including one Tribal community, families with children up to age three will be referred to teams trained in perinatal substance use. These teams will help families connect to treatment and other critical supports before a child welfare case is closed.
Parent-Child Assistance Program (PCAP): PCAP is an evidence-based home visiting and case management program that supports pregnant and parenting mothers with substance use disorders. This budget expands PCAP by 16 slots in each of two high-needs communities, allowing 32 additional families to receive intensive, long-term support.
Updated safety assessment: DCYF will purchase an updated safety assessment and conduct an initial roll-out in two communities highly impacted by fentanyl. DCYF will use this information to inform continuous improvement and a subsequent budget request for statewide roll-out.

($581,000 General Fund-State; $291,000 General Fund-Federal; $128,000 Opioid Abatement Settlement Account)

Phase two of requirements of the D.S. settlement agreement

In June 2022, DCYF and the plaintiffs reached a settlement agreement in a class action lawsuit on behalf of youth who experienced placement instability, including night-to-night placements in hotels and overnight stays in DCYF offices. The agreement requires specific system improvements, ongoing engagement with impacted communities and other stakeholders, court monitor fees, and plaintiff legal costs.

($2 million General Fund-State)

Support for frontline case workers

Case worker workload has increased substantially due to recent legislative changes and State Supreme Court decisions. This funding updates the workload model so it reflects how much time caseworkers actually need to do investigations and manage cases. It helps set more reasonable caseloads so staff can focus on keeping children safe and, when possible, supporting families to stay together. This is a first step focused on the highest-risk areas for child safety, including Intake, Child Protective Services, and Family Voluntary Services.

($2.9 million General Fund-State; $976,000 General Fund-Federal)

Department of Children, Youth, and Families – Juvenile Rehabilitation

Human services: Capital

Our approach to the human services capital budget

The 2026 Supplemental Capital Budget was developed under extremely limited resources, with significant competing demands being placed on those funds. Given current financial constraints, the 2026 supplemental capital budget is unable to support new major construction projects that aren’t absolutely essential to the preservation of health and safety of Washingtonians. Limited investments were made to fully leverage federal funding opportunities, code compliance, and energy efficiency savings.

$0M

For creating additional medium-security juvenile rehabilitation capacity

$0M

For piping replacement at 16 units at the Monroe Corrections Center

$0M

For design and preconstruction of a new 120-bed veterans home in Spokane

$0M

To replace McNeil Island's single, 20-year-old backup power generator

Human services: Capital investments

Critical state facility infrastructure

Department of Children, Youth, and Families

Additional juvenile rehabilitation capacity

Overcrowding at the state’s juvenile rehabilitation facilities operated by DCYF remains an ongoing challenge requiring a timely and sustainable solution. The supplemental capital budget provides funding for the design and construction of new capacity options. These options will be refined in a report due in March 2026.

($15 million State Building Construction Account)

Department of Corrections

Domestic water and HVAC piping system

Leaking galvanized steel pipes have introduced heavy metals into the domestic water system at Monroe Corrections Center. Meanwhile, the aged and outdated HVAC loops leave living units at the ends of the system without adequate heat. This funding continues replacing the piping system that serves nearly 800 incarcerated individuals across multiple living units. The supplemental funding will ensure that this project proceeds without costly delays or interruptions.

($14 million State Building Construction Account)

Department of Veterans Affairs

Skilled Nursing Facility replacement

The Department of Veterans Affairs’ (DVA) current Spokane nursing facility was built in the 1970s and has a hospital-style layout with two-person rooms separated only by curtains, offering limited privacy and posing significant challenges for infection control. The design and preconstruction funding provided in the supplemental budget supports the future development of a new 120-bed facility based on the federal Veteran Affairs’ small-house model, featuring private rooms, communal living areas, expanded outdoor spaces, and a dedicated memory care unit for veterans. Of the total project cost, DVA anticipates that more than $7 million will be reimbursed by the federal government.

($11 million State Building Construction Account)

Department of Social and Health Services

Emergency backup generator replacement

An extended power outage on McNeil Island in the summer of 2025, lasting nearly 80 days, forced 17 buildings to rely on a single generator installed in 2005. This outage affected living units, treatment areas, clinical education spaces, dining and laundry facilities, security operations, and program administration. The generator ultimately failed and emergency generators were used for the remainder of the outage. Funding is provided to the Department of Social and Health Services to replace the single outdated backup generator on McNeil Island with a resilient system that ensures consistent and reliable power.

($6 million State Building Construction Account)

Public health infrastructure

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Natural resources: Operating

Our approach to the natural resources operating budget

Due to the state’s budget constraints, the governor’s proposal for natural resources makes limited but impactful investments to address critical and emergent issues. To balance the budget, additional reductions and savings are also required. This is achieved by identifying the state’s ability to shift dedicated funding sources, extend one-time reductions of the biennial budget, and provide agencies with the flexibility in how reductions are applied. These reductions preserve the core work of the agencies and do not result in the elimination of any programs.

$0M

For wildfire suppression

$0M

To eradicate agricultural pest

$0M

For Fort Worden campus operations

$0M

For Tribal collaboration on recreational management planning

Natural resources: Operating investments

State Parks and Recreation Commission and the departments of Fish and Wildlife and Natural Resources

Department of Ecology

Department of Fish and Wildlife

State Parks and Recreation Commission

Department of Natural Resources

Department of Agriculture

Natural resources: Capital

Our approach to the natural resources capital budget

The 2026 supplemental capital budget was developed under extremely limited resources, with significant competing demands placed on funds. Given these financial constraints, the 2026 supplemental capital budget is unable to support major construction projects. It instead focuses on critical and emergent issues.

Investments have been focused on projects that are required by law or court order, necessary for health and safety, or related to Tribal commitments. The natural resources capital budget is also intended to ensure that safety, compliance, and continued investments in salmon recovery are achieved while agencies focus on their core missions across the state.

$0M

For Salmon Recovery Funding Board

$0M

For emergent deferred maintenance

$0M

For the Capitol Lake-Deschutes Estuary

$0M

For ADA settlement compliance

Natural resources: Capital investments

Salmon and habitat protection

Infrastructure

Department of Ecology

Capitol Lake – Deschutes Estuary

This funding is provided to restore 260 acres of historic estuarine and salt marsh habitat across two miles in South Puget Sound. The restoration, along the shoreline of downtown Olympia and adjacent to the Washington State Capitol Campus, is within the Usual and Accustomed Fishing Grounds and Stations of the Squaxin Island Tribe. Funding continues this project through 100% of its design and permitting.

($3.2 million State Building Construction Account; $4 million Natural Climate Solutions Account; $9.3 million private/local)

Department of Agriculture

Plant products laboratory design

The Plant Services Program is currently working in old and unsafe Washington State University buildings from the 1940s and 1950s. These spaces are no longer suited to the technical demands of modern plant health and pest detection work. A new laboratory building will replace these aging facilities and help the state continue running the tests and inspections that protect crops and sustain agriculture across Washington.

($2.2 million State Building Construction Account)

State Parks and Recreation Commission and Department of Natural Resources

Emergent deferred maintenance and minor works projects

Funding is provided for urgent projects around the state that will help to ensure visitor and staff safety and avoid unexpected service disruptions. These projects include repairs and maintenance such as the Dallesport roof replacement, Dosewallips sewer lift station, various code compliance issues, Lake Chelan comfort station replacement, and Fort Worden gutter replacements.

($8.6 million State Building Construction Account)

State Parks and Recreation Commission

Statewide ADA compliance

Funding supplements the statewide Americans with Disabilities Act (ADA) Compliance enacted 2025–27 biennial budget appropriation and is necessary to increase the agency’s capacity to meet the obligations of the federal settlement agreement between Washington State Parks and the U.S. Attorney’s Office. This project will begin to implement the remediation plan required under the federal settlement agreement, focusing on the removal of accessibility barriers in facilities where activities, programs, and services are provided to the public.

($2.2 million State Building Construction Account)

Department of Natural Resources

Trust land transfer

Trust lands are meant to generate revenue, but some parcels are better suited for management as parks, habitat, or open space. This transfer funds the highest-priority property for the Yakama Nation, allowing it to be managed in a way that better reflects its long-term cultural and environmental value.

($4.4 million State Building Construction Account)

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Education: Operating

$0K+

To ensure equitable access to High School and Beyond resources

$0M

In grants restored to programs proven to improve student outcomes

$0M

For adult education and skills training

$0M

In behavioral health workforce investments

Our approach to the K-12 education operating budget

The governor’s proposed K-12 budget sustains the state’s commitment to Washington’s students. Building on recent investments in special education and student well-being, the proposal strategically reinvests within our limited resources programs that demonstrate strong outcomes and meet shared goals for postsecondary readiness and student stability.

K-12 education investments

Investments

Support postsecondary planning for students statewide

The mandatory High School and Beyond plan is a key tool for preparing students for life after graduation. The supplemental budget invests in the statewide platform that supports this planning. The platform will give students, families, and educators a modern tool for academic planning, career exploration, and transcript-aligned pathway guidance. This investment helps ensure that every student, in every district, receives personalized planning support.

($279,000 General Fund-State)

Graduation program funding for foster youth

The Graduation Success Program supports youth in foster care with individualized academic planning, mentoring, and graduation coaching. Funding the program ensures continuity for vulnerable students who rely on case management, postsecondary transition supports, and barrier-removal services. This investment helps stabilize educational progress for students experiencing foster care statewide.

($3.5 million General Fund-State)

Sustain dual language education opportunities

Dual language programs increase academic achievement, improve bilingual proficiency, and strengthen cultural connection. Continued funding for dual language grants maintains momentum for school districts and State-Tribal Education Compact (STEC) schools that are launching or expanding their programs. These grants fund professional development, program development, and family engagement initiatives, preserving access to high-quality dual language instruction for thousands of students statewide.

($1.5 million General Fund-State)

Continue the Ninth Grade Success program

The Ninth Grade Success program reduces course failure rates, strengthens student belonging, and increases on-time graduation. This funding supports data-driven school teams, early warning system implementation, and coaching for schools statewide. Investing in ninth grade, the most predictive year for high school completion, helps more students stay on the right track.

($1.5 million General Fund-State)

Maintain support for unsheltered students

The Homeless Student Stability Education Program improves identification, outreach, and support for students experiencing homelessness or housing instability. Continuing this investment helps districts provide case management, transportation solutions, academic support, and community-based partnerships to help students remain engaged in school. Sustaining this investment ensures vulnerable students receive coordinated, timely support.

($1.2 million General Fund-State)

Higher education: Operating

Our approach to the higher education operating budget

These higher education investments advance affordability and align with workforce needs. While recognizing current fiscal constraints, this proposal aims to protect high-impact programs, leverages existing infrastructure, and prioritizes investments that address urgent workforce shortages.

Higher education investments

Investments

Education: Capital

Our approach to the education capital budget

Within this year’s serious budget limitations, this capital plan focuses on making existing schools and campuses safer, healthier places to learn rather than promising projects the state cannot afford to deliver. In higher education, our limited funds were focused on the small, critical infrastructure projects that keep our university campuses safe and functioning. These projects include replacing leaking roofs that let in the rain or snow, fixing exterior walls that no longer keep out heat or cold, maintaining HVAC systems that provide clean air, and fixing crumbling walkways so it’s safe for everyone to move between buildings.

Capital gains tax revenue makes it possible to extend this “fix the basics first” approach to K-12 infrastructure. These funds were directed to critical projects in small school districts with 1,000 students or fewer, many of which cannot pass a capital bond or levy. These grants do not require a local match. Capital gains revenue was also put towards lead remediation in schools, helping create a healthier learning environment for all kids. Lastly, state bonds were used to move three schools with high tsunami and seismic risk further along in remediating, renovating, or relocating to make them safer from these potentially catastrophic natural disasters.

Small school districts receiving planning or construction grants

$0M

For retrofits or relocations of K-12 schools in high seismic and tsunami risk areas

$0M

For replacement of lead pipes in schools

$0M

On small, critical infrastructure fixes at higher education institutions across the state

Education capital investments

K-12 infrastructure

Higher education infrastructure

Efforts across higher education

Functional improvements and facility preservation

Colleges and universities must continually maintain the core systems that keep campuses safe, accessible, and efficient. The supplemental budget focuses on the most urgent of these small projects:

Building envelopes – Walls, roofs, and windows that keep out water and extreme temperatures are essential to a building’s basic function. Improving these systems prevents leaks, protects interiors, and makes buildings more energy efficient and affordable to operate.
Underground infrastructure – Sewer lines, stormwater systems, plumbing, and heating and cooling distribution all run below ground and are critical to keeping campuses functioning. Targeted repairs and replacements help avoid failures that can disrupt learning and campus operations.
Stairs, sidewalks, and other walkways – Regular upkeep of stairs, sidewalks, and other pathways that keep campuses in compliance with safety and accessibility standards.

($20.4 million State Building Construction Account)

State Board for Community and Technical Colleges

CTC-wide grant programs for HVAC tune-ups and real-time scheduling

Two new grant programs help community and technical colleges run their buildings more efficiently and reduce emissions:

CTC Building Tune-Up Program ($2 million) – This program identifies and fixes problems in complex HVAC systems so they work as intended. Tuning up these systems reduces energy use, extends equipment life, lowers greenhouse gas emissions, and cuts operating costs.

CTC HVAC Control-to-Schedule Upgrades ($2 million) – This program replaces outdated, manual, “always on” controls with modern systems that adjust heating and cooling based on actual schedules and occupancy. Pilot projects over the past two years have already shown significant reductions in building energy use when colleges move to automated, schedule-based controls.

($4 million Climate Commitment Account)

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