Washington Democrats Unveil Budget Deal with Cuts, Rainy Day Fund Withdrawal

The $79.4 billion plan aims to address budget shortfall, but faces GOP opposition

Mar. 12, 2026 at 9:17am

Washington state Democrats have released a $79.4 billion budget deal that includes one-time maneuvers, withdrawing from the rainy day fund, and cutting funding for child care providers and education programs to address a projected $878 million budget shortfall. The plan faces criticism from Republican lawmakers who call it "reckless spending" and say it will force difficult budgeting decisions in future years.

Why it matters

The budget deal highlights the ongoing fiscal challenges facing Washington state, as lawmakers grapple with rising costs, federal policy changes, and a need to find new revenue sources. The cuts to child care and education programs could have significant impacts on families and students across the state.

The details

The budget deal makes changes to the $77.8 billion two-year budget passed last year, including a $880 million withdrawal from the rainy day fund. The biggest new spending goes toward addressing growing lawsuit payouts and federal changes to safety net programs. Revenue from a new income tax on millionaires is not expected until 2029. The budget cuts $143 million from child care providers serving low-income families, and reduces funding for the Transition to Kindergarten program and local school district assistance.

  • The budget deal was released on Wednesday, March 11, 2026.
  • Votes on the deal are planned in the House and Senate on Thursday, March 12, 2026, the last day of the 2026 legislative session.
  • Gov. Bob Ferguson will have roughly three weeks to sign the budget after it passes the legislature.

The players

Sen. June Robinson

Chair of the Senate Ways and Means Committee, a Democrat from Everett.

Rep. Travis Couture

The lead Republican budget writer in the House, representing the 35th district.

Sen. Chris Gildon

The GOP budget lead in the Senate, representing the 25th district.

Gov. Bob Ferguson

The Democratic governor of Washington state.

Commissioner of Public Lands Dave Upthegrove

A state official who pushed for increased wildfire funding in the budget.

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What they’re saying

“There will be a lot of people who are disappointed by this budget. We knew that. I think we did the best we could with the resources that we have available to us.”

— Sen. June Robinson, Chair of the Senate Ways and Means Committee

“It's just more reckless spending. Had my side of the aisle been in the room with the 3 million people plus that we represent, maybe we could have come up with, maybe, something a little bit better.”

— Rep. Travis Couture, Lead Republican budget writer in the House

“It's going to force really difficult budgeting decisions in future years.”

— Sen. Chris Gildon, GOP budget lead in the Senate

What’s next

The budget deal must pass the House and Senate on Thursday, March 12, 2026, before going to Gov. Bob Ferguson for his signature.

The takeaway

The Washington state budget deal highlights the ongoing fiscal challenges facing the state, as lawmakers are forced to make difficult choices between funding priorities like education, child care, and public services. The reliance on one-time measures and the rainy day fund raises concerns about the long-term sustainability of the state's finances.