Strategic Priorities
Governor Ferguson's strategic priorities
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.
2x
Washington has doubled its housing underproduction rate since 2012
74K+
Number of affordable homes created and preserved by the Housing Trust Fund since 1986
#6
Washington ranks sixth worst in the country for severity of housing underproduction
$5M
For multifamily housing homes to comply with Washington’s clean building standards
500K+
Number of affordable housing homes that are needed by 2044
$225M
For creating and preserving affordable housing homes through the Housing Trust Fund
>50%
More than half of the population spends more than one-third of their income on rent
$81M
for developing affordable multifamily rental projects
Housing highlight items
Summary of housing investments, 2026 supplemental
| Focus Area | Items | Agency | Amount |
|---|---|---|---|
| Bolstering affordable housing supply | Extending the reach of the Housing Trust Fund | Commerce | $225,000,000 |
| Reducing costs for developers | Multifamily building efficiency grants reduce operating costs | Commerce | $5,000,000 |
| Creating a housing accelerator framework | Commerce | $350,000 | |
| Updating residential commercial zoning | Commerce | $135,000 | |
| Updating local planning requirements for affordable housing | Commerce | $214,000 | |
| Reinstating permit review grants | Commerce | $1,000,000 | |
| Extending low-income home rehabilitation grants for flood victims | Assisting low-income rural homeowners rehabilitating flood damaged homes | Commerce | $5,000,000 |
| Protecting affordable housing for future generations | Incentivizing transit-oriented development | Commerce | $663,000 |
| Supporting coordinated land banking legislation | Commerce | $2,000,000 | |
| Taking the first steps to establish a Housing Agency Task Force | Commerce | $500,000 | |
| Partnering with the Home Futures Institute | Commerce | $4,000,000 | |
| Total | $243,862,000 |
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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. Our highway system connects people, places, and goods across 71,000 square miles of terrain encompassing 50,000 miles of rivers and streams, 3,200 miles of coastline, and multiple islands and mountain ranges.
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 such as section loss, cracking, spalling, or scour that need to be addressed, but the bridge is not yet unsafe for travel. As structures age and wear down, they become less able to withstand unexpected impacts and are more likely to require emergency closures. Since August, vehicle strikes have forced four such closures on state bridges and overpasses. In October 2025, a truck hit the Bullfrog Road overpass on I-90, shutting down the interstate and triggering months of reconstruction to replace the damaged span. Each closure brings long detours, stalled freight, delayed emergency response, and hours of extra travel time for families and workers who rely on these routes every day.
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. A 2022 report by the American Automobile Association found that one in 10 vehicles needed repair after hitting a pothole, with an average cost of $400 to $600 per incident.
In this context, 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.
Transportation highlight items
Summary of transportation reductions and investments
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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.
8,702
Children eligible for state or federally funded preschool who are unserved.
2,000
Initial preschool slots added through partnership with Ballmer Group.
25%
Nationwide increase in health insurance premiums in 2026.
54,000
People who will have access to subsidized plans through Cascade Care
30,000
Low-income people losing access to Supplemental Nutrition Assistance Program food benefits due to federal legislation.
30,000
People added to state-funded Food Assistance Program.
25%
Low-income households in the state with a heavy utility costs burden.
125,000
Low-income families that will receive utility bill credits.
Even in the face of these headwinds, Washington continues to lead the nation with programs that make our state a great place to live, work, and raise a family:
- Paid Family Medical Leave allows workers to care for a new child or recover from serious illness without sacrificing their paycheck, helping families remain financially stable during life’s most important moments.
- The Working Families Tax Credit further strengthens household budgets by putting more money back into the pockets of low- and middle-income residents.
- WA Cares, the nation’s first public long-term care insurance program, ensures all working Washingtonians can earn access to home care, assisted living, or nursing support when they need it, so families are not forced to choose between financial ruin and caring for loved ones. The AARP ranked our state as second in the nation for long-term care services based on affordability and access, recognizing Washington for innovating with unique ways to support family caregivers at the state level.
- Washington also safeguards access to food benefits for people who qualify for the federally funded Supplemental Nutrition Assistance Program (SNAP). The state also protects those who are excluded from SNAP because of their citizenship status through the Food Assistance Program. These programs help hundreds of thousands of households have access to healthy food.
Taken together, these programs help make living in Washington more affordable. Governor Ferguson’s proposed budget continues this commitment to affordability by providing focused relief to people and communities most affected by rising costs. The budget limits cuts to critical programs that keep families afloat during economic uncertainty and adapts to the higher costs of delivering core services and shifts in federal funding and policy.
Providing focused relief
This budget delivers focused relief to people and communities most affected by rising costs, including renters and first-time homebuyers, working families, lower-income workers, and Washingtonians on fixed incomes.
Preserving vital systems
Within an overall climate of reductions, this budget keeps cuts in this area as limited as possible to keep critical programs within reach of families and communities who need them most in this period of economic uncertainty.
Adapting to current conditions
This budget recalibrates state policies and investments to account for higher costs of delivering core services and shifts in federal funding and policy.
Summary of affordability investments, 2026 supplemental
| Focus Area | Items | Agency | Amount |
|---|---|---|---|
| Providing focused relief | Washington Families Clean Energy Credits | Commerce | $30,000,000 |
| Providing focused relief | State Home Energy Assistance Program | Commerce | $33,000,000 |
| Providing focused relief | Summer EBT program | DSHS | $4,200,000 |
| Providing focused relief | Support services for individuals newly arriving to the United States | DSHS | $25,000,000 |
| Providing focused relief | Support for unaccompanied children | DSHS | $500,000 |
| Providing focused relief | Food Assistance Program reimbursement | DSHS | $2,100,000 |
| Preserving vital systems | Expand Food Assistance Program for those losing SNAP eligibility | DSHS | $48,900,000 |
| Adapting to current conditions | ECEAP expansion, Pre-K Promise Account | DCYF | Private funding |
| Adapting to current conditions | Cascade Care Savings premium subsidies | Health Benefit Exchange | $25,000,000 |
| Total | $168,700,000 |
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Collective Bargaining Agreements are central to our efforts to attract and retain the skilled professionals that keep Washington safe and operating. The Office of Financial Management reached two agreements that are tailored to the state’s workforce and operational needs. These two agreements are being submitted outside the standard biennial bargaining cycle, which typically occurs in even-numbered years for funding consideration in the following legislative session.
Some key provisions of these agreements are:
- General wage increases to address the impacts of inflation.
- Competitive pay for low-wage workers.
- Targeted wage increases for roles with recruitment and retention challenges.
- Premium pay for employees who accept positions in hard-to-fill environments or shifts, such as wildfire teams.
The total 2025–27 cost of these bargained agreements is $36.2 million. These investments lead to a more stable economy and improve the quality of life for everyone.