Washington state lawmakers wrapped up their 2025 legislative session this weekend by approving a $71.7 billion operating budget, a $15.5 billion transportation budget, and a $9.3 billion capital budget. The three spending plans now head to Gov. Bob Ferguson for final approval.

The two-year, $71.7 billion operating budget funds public schools, Medicaid, homelessness services, and salary increases for public employees. Lawmakers closed a projected $16 billion budget shortfall through a combination of about $4 billion in spending cuts and efficiencies, targeted tax increases, and conservative revenue forecasts. They avoided broad new taxes, instead approving higher business and occupation tax rates for some industries and changes to real estate excise taxes on high-value properties. The plan also preserves the state’s Rainy Day Fund.

The $15.5 billion transportation budget funds highway maintenance, ferry operations, new road construction, and transit grants, while continuing investments under the Move Ahead Washington plan. It prioritizes bridge repairs, ferry service expansion, and projects that improve safety and climate resilience, including new funding to address transportation disruptions caused by wildfires. Some ferry construction schedules were adjusted due to delays, but major long-term modernization projects remain on track.

The $9.3 billion capital budget funds school construction, with a focus on rural and distressed communities, and expands affordable housing, clean energy infrastructure, behavioral health facilities, and upgrades to local parks, water systems, and broadband access.

Democratic leaders said the budgets invest in core services and infrastructure without overextending state finances. Republican lawmakers opposed some of the targeted tax increases and argued the operating budget did not do enough to address housing costs and public safety.

The Legislature adjourned just ahead of its Sunday night deadline, concluding the 105-day session.