The 2025–27 biennial transportation budget balanced thanks to a revenue package that included an increase to the gas tax and increased sales taxes on transportation-related transactions. The tax and fee increases were expected to increase revenues by $1.885 billion through 2027–29. These funds were used mainly to shore up existing projects.

Nevertheless, the biennial budget only balanced through 2027–29. Transportation budgets, which fund long-term capital projects, typically balance over longer periods (usually six to ten years).

Then, the February transportation revenue forecast reduced estimated transportation revenues by $118.0 million (through 2027–29) compared to the revenues assumed in the enacted biennial budget.

This year, the Legislature passed a transportation bond bill and a resources bill. The bond bill (SSB 6225) would authorize the sale of $800 million in general obligation bonds, and the proceeds would be deposited in the move ahead WA account.

The resources bill (ESHB 2711) would make some clarifications related to ESSB 5801, the 2025 legislation that increased transportation taxes and fees. ESHB 2711 would also repeal the luxury aircraft tax that was adopted last year and increase the aircraft fuel tax and aircraft registration fees. There is not yet a fiscal note for the version of the bill that was passed by the Legislature.

Given those resources, the Legislature passed a 2026 supplemental transportation budget (ESSB 6005) that would increase appropriations by $1.162 billion (7.5%). Revised 2025–27 transportation appropriations would be $16.620 billion. (The governor has not yet signed the budget bill or the bond and resources bills.)

The 2026 supplemental would balance over six years, through 2029–31.

Appropriations for highway preservation make up the largest share of the supplemental changes. They would increase highway preservation funding for 2025–27 by $405.0 million (44.8%). The increase for preservation is funded mainly by the $800 million bond sale: The supplemental appropriates $300 million from the move ahead WA account for the additional highway system preservation project, “to support essential preservation activities necessary for timely highway and bridge repairs, replacements, and paving.” The budget also states that it is the intent of the Legislature to appropriate $500 million for this project in 2027–29. (The longer-term project list shows that the Legislature plans to add another $400 million in 2029–31.) Additionally, the Legislature plans to appropriate $100 million in 2029–31 for highway preservation in high-risk corridors.

Similarly, the budget would appropriate $40.0 million from the move ahead WA account for highway maintenance. The budget summary documents note that the Legislature plans to increase this amount to $80 million in 2027–29 and 2029–31.

Other major appropriations for 2025–27 include:

• $238.2 million for highway improvements (in many cases, funds are shifted from another biennium to 2025–27);
• $136.1 million for ferry capital projects (including $106.3 million for vessel and terminal preservation);
• $62.3 million for rail capital projects;
• $50.1 million for local programs capital projects; and
• $31.7 million for the county road administration board.

Note that the local programs projects would actually have increased appropriation authority of $230.0 million for 2025–27. However, the budget assumes $180.0 million in “anticipated project underruns.”

Finally, some notable provisos in the budget include:

• The Joint Transportation Committee would be required to report on other state laws related to minimum liability insurance requirements, failure to wear a seat belt as evidence of negligence in a civil action, and state defenses involving claims for injury or wrongful death when the person was engaged in a felony to determine whether current Washington laws should be modified.
• The Washington State Institute for Public Policy would be required to review data on uninsured motorists. WSIPP “may evaluate the potential impacts of requiring proof of liability insurance coverage at the time of vehicle registration renewal.”
• The Department of Licensing would be required to report quarterly on “actions taken to protect personal individual data from misuse, particularly for immigrant communities.”