OLYMPIA – House Democrats released their 2026 supplemental operating budget yesterday, an update to last year’s biennial budget that reflects changes in revenue and caseloads since April 2025. The proposal responds to increased demand on state services, along with faltering revenue impacted by the Trump Administration tariffs, inflation, and growing cost pressures on state government. Under the House Democratic proposal, the state budget largely maintains existing services such as Apple Health, child care, and housing, while asking for a reduction in state government agencies.
Under the proposed budget many critical programs and services are maintained at current levels. Food assistance, which was funded to historic levels during the COVID-19 pandemic, remains fully funded – even as the state is bearing additional costs from H.R. 1. Thanks to an investment from the Ballmer Group, the House proposal expands the Early Childhood Education and Assistance Program (ECEAP) to an additional 2,000 students. The proposed budget maintains investments in housing and homelessness, including funding for local housing and shelter programs also hit by federal funding reductions. This proposal also restores cuts made last year to reproductive health services funding, critical in shoring up access to reproductive care in Washington state.
“This budget reflects reality but with hope for the future. The reality is that painful cuts are necessary to balance the budget. But we are able to maintain critical services and programs that working families rely on,” said Rep. Timm Ormsby, chair of the House Appropriations Committee. “The cuts we propose are not a reflection of desire, but of necessity, brought on by a tax structure that simply isn’t built for the 21st century.”
The largest cost drivers in this budget come from existing programs and services being utilized by Washingtonians. Working Connections Child Care, long-term care and developmental disabilities, and the Washington College Grant received significant “maintenance level” increases. Those are added costs without expanding services.
Significant savings are achieved through a three percent reduction in administrative services in state government agencies, except for those agencies with 100 employees or fewer. There is also a 1.5 percent administrative reduction at Washington’s higher education institutions.
Child care & early learning eligibility remain at existing levels, but a new attendance policy and eliminating planned expansions result in less future spending and caseload impact, saving hundreds of millions in upcoming budgets. Basic education funding remains untouched, but programs selected by the governor for reductions, such as Transition to Kindergarten and Running Start, also see reductions in this proposal.
“We are in a difficult budget situation caused primarily by two things: the harmful actions of Congress and the president; and by Washington’s 93-year-old tax structure that fails to keep pace with the quality of K-12 education, higher education, health care, and early learning services that Washingtonians have consistently told us they want,” said Rep. Joe Fitzgibbon (D-West Seattle), House Majority Leader. “By reforming Washington’s tax code for the 21st century, we can meet these needs in a sustainable way.”
“Our caucus has always held a strong belief that we need to provide food, shelter, and health for those who need it the most,” said Rep. Mia Gregerson (D-SeaTac). “Despite the harm caused by the federal government with H.R. 1, we maintain funding for emergency food assistance and keeping vulnerable populations like our immigrant and refugee communities from losing access to basic needs. Even though SNAP costs are going up due to H.R. 1 we’re stepping up as a state to meet the needs of Washingtonians.”
“This budget stands up for Washington’s most vulnerable residents by protecting access to health care and housing in the face of targeted federal attacks,” said Rep. Nicole Macri (D-Seattle). “House Democrats are committed to maintaining essential client services and provider reimbursement rates and leveraging federal dollars to keep our communities stable and strong.”
The Millionaire’s Tax is assumed in the final year of the 4-year outlook. That revenue will remain unavailable until Fiscal Year 2029, which is why the House Democratic proposal includes revenue options from Governor Ferguson’s budget proposal, impacting insurers, data centers, and prescription drug resellers.
“Under our regressive tax code, essential services are still disproportionately funded by working families, while the ultra-wealthy benefit the most and pay the least. The gaps between working families and the gains by the wealthiest in our state have resulted in not enough funding for schools, a safety net that is at risk every time revenue collection drops or costs go up, and average Washingtonians struggling to make ends meet,” said Rep. April Berg (D-Mill Creek), Chair of the House Finance Committee. “This session, we’re considering multiple smaller non-tax revenue options to ensure funding for essential services while we work to implement the critical reform needed to align our tax code to better reflect Washington’s 21st century economy, rapid growth, and expanding needs, and relieve economic pressures on lower- and middle-income families.”
Excess contributions and investments from HB 2034 (Concerning termination and restatement of plan 1 of the law enforcement officers’ and firefighters’ retirement system) are allocated to maintain funding in the Climate Commitment Account, which helps cover funding for the Working Families Tax Credit. $880 million from the Budget Stabilization Account is transferred into the general fund but is also backfilled by HB 2034. Additionally, the proposal transfers $75 million from the Public Works Assistance Account.
The 2026 operating budget total spending is $79 billion ($160 billion over 4 years), with $457 million in new revenue (not including the Millionaire’s Tax, approximately $2.1 billion in FY29) and $2.4 billion (over the 4-year outlook) in reductions. Rainy day reserves in the Budget Stabilization Account end around $2.8 billion (6.5%) with total reserves at $3.3 billion (7.8%) over the four year period.
For more information:
Budget details from the House Office of Program Research available at fiscal.wa.gov.
Public Hearing on the House budget proposal in the Appropriations Committee (Monday, February 23, 4PM) available on TVW here.