To address transportation budget revenue and cost challenges, the Legislature increased transportation taxes and fees. New revenues include the first gas tax increase since 2015 and increases to the retail sales and use taxes owed on several transportation-related transactions. Additionally, beginning in 2027–29, 0.1% of state sales and use tax collections is dedicated to the multimodal account instead of the general fund–state.

The enacted 2025–27 transportation budget appropriates $15.458 billion from all funds. Of that, $5.376 billion is for improvements. Despite the adoption of a new revenue package, the funding is used mainly to shore up existing projects rather than begin new ones. Planned spending for some projects over time is increased in this budget, and other projects are delayed compared to the plan in the 2024 supplemental.

The 2025–27 transportation budget balances through 2027–29, which is a shorter time frame than normal. However, adjusted for inflation, resources are expected to slowly decline beginning in FY 2030. The revenue package adopted this year does not solve Washington’s transportation funding challenges beyond four years, and gas taxes are expected to decline over time (especially adjusted for inflation).

Read the report here.