The 2025 Washington legislative session ended on April 27. The information below reflects the final legislative budget. The Governor has until May 20 to sign the budget and exercise his veto authority. The budget does not be- come final until he acts. This overview was prepared before the Governor has taken action.
 
As a reminder, the Governor has line-item veto power, meaning he can eliminate funding but cannot add new spending or shift dollars around.
 
Over the final weeks of the session, the Legislature returned to the drawing board multiple times to draft a budget that included new revenue to navigate a $16 billion deficit projected over the next four years.
 
Why did the Legislature have to return multiple times to the drawing board? The Governor repeatedly and consistently expressed opposition to a wealth tax, as well as concerns about relying too heavily on new revenue to balance the budget. As a result, the final budget includes more, and deeper, cuts. Another major concern is the potential impact of looming federal Medicaid reductions. Although these cuts are largely unpopular – effectively reducing healthcare access for many Americans while further lining the pockets of the wealthy – the Repub- lican-controlled House continues to move closer to a budget proposal that includes them. If these cuts are en- acted, the Governor is expected to call a special legislative session to address the resulting healthcare crisis.
 
Current Budget Snapshot:

• Final operating budget: $77.8 billion

• Four-year outlook: $7 billion in total reductions

• New revenue (2025–2027): $4.3 billion

• New revenue (2027–2029): $4.4 billion

 
 
Rainy Day Fund: $2 billion remaining
Cash reserves: $225 million
 
Investments in K–12 Education:

• $750 million for special education services

• $213 million for materials, supplies,

• and operating costs

• $200 million in local effort assistance for low-income school districts

 
Investments in State Workers:

• Approximately $1 billion to fund and approve collective bargaining agreements for state employees

 
Housing Investments:

• $605 million to the Housing Trust Fund

• $117 million in grants to local governments to offset lost document recording fee revenues

 
Maintaining Core Services:

• $93 million for emergency food assistance organizations

• $27.9 million for senior nutrition programs

• $20 million to expand resources for crime victims

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Pam Crone is a retired lobbyist and Chair of PSARA's Government Relations Committee (GRC).