OLYMPIA – Washington’s 2025-27 capital budget prioritizes meeting the state’s biggest challenges head-on, from housing to education, in a way that supports the well-being of individuals and families across the state.
“In one of the toughest budget years the legislature has faced, I’m proud of the work that was done to protect and stabilize the future of Washington’s workers, students, and families,” said Rep. Greg Nance (D-Kitsap). “This capital budget creates jobs and opportunities for folks right here in Kitsap, investing in our local economy at a time when folks are searching for signs of hope.”
The state has three budgets: operating, which pays for day-to-day costs; transportation; and capital, which funds construction projects.
Here are top-level highlights of the $7.5 billion, two-year capital budget, which passed with overwhelming bipartisan support:
Affordable Housing
The new two-year budget invests a historic total of $782 million in housing and homelessness programs. This includes a record-setting $605 million for the Housing Trust Fund, directly funding the construction of affordable housing.
K-12 and early learning
There is nearly $1 billion for K-12 school construction and early learning facilities. That total includes $202 million for small district and tribal compact schools, $151 million for school seismic safety, and $100 million for early learning facilities.
Fish, water, and natural resources
There are significant investments in salmon hatcheries, floodplain safety, and environmental protection, with $365 million in projects for salmon and steelhead recovery. The budget also invests $120 million in the Washington Wildlife & Recreation Program and $171 million for water infrastructure.
Behavioral Health
The budget includes $130 million in grants for projects expanding behavioral health care capacity in community settings and funds the completion of the new forensic hospital facility at Western State Hospital.
For more details about the capital budget—or the state operating budget and transportation budget–visit fiscal.wa.gov.
The budget invests $29 million for Kitsap, including:
- $18.5M for the Poulsbo SUD Clinic
- $2.5M for expanding the Community Resource Center and Foodbank
- $1.5M for the Housing Trust Fund (St. Vincent de Paul Star of Hope)
- $927K for Peninsula Community Health Services for Dental Capacity Grants
- $2M for Chief Kitsap Suquamish school modernization
- $1.3M for the UW Little Manzanita 4 wildlife recreation support
- $300K each for Peninsula Community Health Pine House and Spruce House for affordable housing supply and preservation
- $124K for the preservation of Suyematsu Farm
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