Washington Legislature Proposes Tapping Rainy Day Fund, Cutting Child Care Funding

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Democrats in the Washington Legislature have proposed tapping the state's rainy day savings account and slashing hundreds of millions of dollars for a child care program for low-income families to balance the state's budget into next year. The plans would create budget deficits in the first year of the upcoming budget cycle, before returning to the black the following year.

Why it matters

The budget proposals highlight the difficult fiscal challenges facing Washington state, including rising lawsuit payouts, the impact of federal policy changes, and inflationary pressures. The decisions around the rainy day fund and child care funding could have significant implications for the state's financial stability and support for vulnerable families.

The details

The Senate Democrats' plan calls for funneling about $1 billion toward skyrocketing legal payouts, while the House plan provides roughly $400 million for these costs. Both chambers propose pulling north of $700 million from the rainy day account. The plans also address federal changes to safety net programs, including funding to help cover long-term care for noncitizens and build IT infrastructure for new Medicaid and food stamp requirements.

• The current two-year budget cycle runs from July 1, 2025 to June 30, 2027.
• The supplemental budget proposals being considered would make adjustments to this current two-year spending plan.
• Lawmakers have a deadline of March 12, 2026 to pass a final budget.

What they’re saying

What’s next

Lawmakers' budget proposals are set for committee hearings on Monday, with votes from those panels scheduled for Wednesday. Votes from the full chambers are planned to follow on Friday and Saturday, paving the way for negotiations on a final package.