Washington Democrats propose tapping rainy day fund, slashing child care aid to balance budget

Lawmakers aim to address rising legal payouts, federal changes to safety net programs

Feb. 23, 2026 at 5:22pm

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Washington Democrats in the state legislature have proposed tapping the state's rainy day fund and cutting hundreds of millions of dollars from a child care program for low-income families to help balance the state's budget. The plans would also funnel over $1 billion toward skyrocketing legal payouts, with the Senate plan calling for a $750 million withdrawal from the rainy day account and the House plan proposing an $880 million withdrawal.

Why it matters

The budget proposals highlight the difficult fiscal challenges facing Washington state, as lawmakers grapple with rising costs, federal changes to safety net programs, and a surge in legal payouts related to alleged government misconduct. The decisions around the rainy day fund and child care funding could have significant impacts on the state's finances and residents.

The details

The Senate's $79.3 billion two-year budget plan is nearly $1.5 billion larger than the $77.8 billion approved last spring, with much of the increase due to rising demand for services and programs. The House plan is around $79.2 billion. Both plans call for pulling over $700 million from the rainy day account, with the Senate plan including about $1 billion for legal payouts and the House plan providing $400 million. The Senate would cut over $800 million from the child care program for low-income families, while the House would reduce funding by less.

  • The current two-year budget cycle runs from July 1, 2025 to June 30, 2027.
  • Lawmakers have a deadline of March 12, 2026 to pass a final budget.

The players

June Robinson

Chair of the Senate Ways & Means Committee, a Democratic state senator from Everett.

Timm Ormsby

The lead budget writer for House Democrats, a Democratic state representative from Spokane.

Travis Couture

The budget lead for House Republicans, a Republican state representative from Allyn.

Bob Ferguson

The Democratic governor of Washington who released his own budget proposal in December 2025.

Joe Fitzgibbon

The House Majority Leader, a Democratic state representative from West Seattle.

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What they’re saying

“This has been a particularly challenging supplemental budget to put together.”

— June Robinson, Chair, Senate Ways & Means Committee

“In the middle of another predictable multi-billion-dollar deficit, Democrats chose to spend more than Washington was projected to bring in and grow government by another $2 billion. They drained the Rainy-Day Fund, launched an unconstitutional income tax, and raided a pension system — all to avoid making hard decisions.”

— Travis Couture, Budget lead, House Republicans

“If we weren't paying for the tort liability costs, we actually wouldn't be spending more.”

— June Robinson, Chair, Senate Ways & Means Committee

“That revenue forecast was a welcome relief so that we didn't have to do some of the draconian cuts that we had been considering.”

— Timm Ormsby, Lead budget writer, House Democrats

“We will get it done.”

— Timm Ormsby, Lead budget writer, House Democrats

What’s next

The House and Senate budget proposals will go through committee hearings on Monday, February 27th, with votes from those panels scheduled for Wednesday, March 1st. Votes from the full chambers are planned to follow on Friday, March 3rd and Saturday, March 4th, paving the way for negotiations on a final budget package.

The takeaway

Washington lawmakers are facing difficult choices as they work to balance the state's budget, with proposals to tap the rainy day fund and cut funding for child care programs highlighting the tradeoffs involved. The surge in legal payouts and federal changes to safety net programs are adding significant pressure, underscoring the complex fiscal challenges the state is navigating.