Beginning in 2019–21, Washington’s operating budget has been augmented by federal pandemic relief funds. Chart 1 shows spending from funds subject to the outlook (NGFO) along with federal relief funds (for both the Great Recession and the pandemic recession). The 2023–25 amount shows biennial appropriations as revised by the 2024 supplemental (as passed by the Legislature). The federal relief in the chart includes, for example, the coronavirus state fiscal recovery fund (CSFRF); relief funds for schools; and funding for child care, public health, and housing assistance. (It does not include the funding Washington received from the enhanced federal match for Medicaid.)

As the chart shows, federal relief during the Great Recession helped to offset cuts to state spending. Pandemic relief, on the other hand, has added federal money on top of increasing state spending. Federal relief is starting to wind down this biennium, but it is still substantial. NGFO appropriations for 2023–25 (including the 2024 supplemental) are 15.8% higher than actual NGFO spending in 2021–23. However, in terms of the NGFO plus federal relief, 2023–25 appropriations are 7.2% higher than 2021–23 spending.

The CSFRF is one of the most flexible pots of federal relief money. It may be used broadly to replace public sector revenue; to respond to the public health and economic impacts of the pandemic; for premium pay; and for water, sewer, and broadband infrastructure. The state of Washington was allocated $4.428 billion from the CSFRF.

The money must be obligated by Dec. 31, 2024 and spent by Dec. 31, 2026. (Note that in November 2023, the U.S. Department of the Treasury issued a rule that changed the definition of “obligation” for the purposes of the CSFRF “to provide additional flexibility to recipients.”)

According to spending data submitted by the state of Washington to Treasury, through Sept. 2023, Washington had spent $3.370 billion of its CSFRF allocation. ($3.795 billion had been obligated.) Chart 2 shows how that money has been spent. (The CSFRF figures include both operating and capital spending across the operating, capital, and transportation budgets.)

The actual spending reported to Treasury is slightly different than the amount shown in state fiscal data. State fiscal data shows that the state spent $88.7 million in 2019–21 and $3.346 billion in 2021–23 from the CSFRF, for a total through June 30, 2023 of $3.435 billion.

On top of the $3.435 billion, the enacted 2023–25 biennial budgets appropriated $486.2 million from the CSFRF. The 2024 supplemental budgets (as passed by the Legislature) appropriate another $451.2 million. Thus, the total spent or appropriated (according to state fiscal data) is $4.372 billion.

The accounting of the CSFRF money is not final; indeed, the state is still moving the CSFRF funds around in order to make the best use of them. For example, the 2024 supplementals do the following:

• For the Department of Corrections, $262.3 million from the CSFRF is used instead of the general fund–state (GFS).
• For the Department of Commerce, $77.6 million from the GFS is used instead of the CSFRF.
• For the Department of Health, $18.7 million from the GFS is used instead of the CSFRF.
• $250.0 million from the CSFRF is appropriated for the Office of Financial Management to provide to agencies for eligible CSFRF costs that are currently funded with other funding sources, so that they “prioritize the preservation of state general fund moneys.”