The newly adopted state budget closes a $16 billion projected shortfall with nearly $3 billion in cuts, including delayed program expansions, reduced health care investments, and the phasedown of select services. While lawmakers avoided furloughs and preserved reserves, the final plan postpones or scales back several cornerstone initiatives.

Early learning expansions postponed

The expansion of the Fair Start for Kids Act is delayed until after 2029, postponing new entitlements to subsidized preschool and child care for low- and middle-income families. Increased provider rates and broader eligibility under the Working Connections Child Care Program were also deferred—savings that total over $1 billion.

Student loan and financial aid funds redirected to general budget

Nearly $92 million intended for student financial support was transferred to the general fund. That includes $88.9 million from the Washington Student Loan Account, $1.75 million from the Medical Student Loan Account, and $945,000 from the State Financial Aid Account. While current obligations remain funded, these shifts limit capacity for future loan and aid expansion.

Free infant and toddler care unfunded

A public early learning program for children from birth to age 3—serving about 200 low-income families—received no funding in the final budget. The program had included both child care and wraparound health and support services.

Medicaid expansions postponed to reduce costs

The state delayed plans to cover FDA-approved weight loss drugs under Medicaid, barring coverage without future legislative approval. It also reduced funding by more than $6 million for a Medicaid-like program for undocumented adults, limiting enrollment and postponing broader implementation.

Abortion care funding reduced by more than half

Abortion access funding was cut from $15.8 million to $7 million over two years. The consolidated funding covers provider grants, staffing, security, and outreach, narrowing the state’s support amid increased out-of-state demand.

The budget is now on Gov. Bob Ferguson’s desk. He must sign or veto it by May 17.