OLYMPIA – Washington’s projected transportation revenue collections through 2029 increased by around $6.8 billion from the March 2025 forecast, according to estimates released today by the Washington State Transportation Economic and Revenue Forecast Council.

Of the increase, $280 million is due to economic changes since the March forecast. This represents a modest growth in expected revenue from when the Legislature passed the 2025-27 transportation budget in April.

The forecast increase also includes around $6.5 billion due to new legislation, account transfers, and revenues from the Climate Commitment Act (CCA) allocated to transportation purposes. This is the first time the forecast council has included CCA revenues in the forecast.

New legislation this year impacting the revenue forecast included a 6-cent increase in the fuel tax, from 49.4 cents to 55.4 cents starting July 1, 2025. To keep up with inflation, the rate will then increase by 2% each year starting in July 2026.  Other changes include an increase in truck weight fees, and a new luxury vehicle tax on vehicles over $100,000.

The forecast is comprised of revenue estimates for the current biennium (2023–25) which ends June 30, 2025, the next biennium (2025–27), and the subsequent biennium (2027–29):

Full details of the forecast are available on the forecast council’s website.

What’s next

• The 2025-27 biennium will begin on July 1, 2025.
• The next forecast for transportation revenue is scheduled for September 26, 2025. Transportation revenue review meetings are broadcast on TVW, with scheduling details available beforehand on the ERFC website.

About the Economic and Revenue Forecast Council: The Economic and Revenue Forecast Council supports statewide goals by accurately forecasting economic activity and state tax revenue for Washington state.  ERFC is comprised of both legislative and executive members and the State Treasurer. Four times a year the organization adopts a bipartisan revenue forecast that is then used to build the state operating and transportation budgets. The ERFC is also charged with providing the state budget outlook to increase transparency and to promote state government financial stability.

About the Office of Financial Management: The Office of Financial Management provides vital information, fiscal services and policy support that the governor, Legislature and state agencies need to serve the people of Washington.