Washington drivers will pay an extra 6 cents per gallon at the pump starting in July, part of a $3.2 billion transportation funding package passed by the Legislature. The increase—the first in nearly a decade—raises the state gas tax to 55.4 cents per gallon and adds a 2% annual inflation adjustment. Diesel fuel taxes will also rise by six cents over the next two years.

The new revenue is aimed at closing an $8 billion shortfall driven by rising construction costs and declining gas tax receipts. Lawmakers say the money will support highway maintenance, safety projects, and compliance with court orders to remove culverts that block fish passage.

In addition to the fuel tax, the package raises fees on vehicle sales, rentals, registrations, and ferry fares. It also imposes new 8–10% luxury taxes on high-end cars, aircraft, and motorhomes worth more than $100,000 or $500,000, and increases tire fees and rental car surcharges.

Fuel tax revenue will flow to the Move Ahead WA Account, while other charges fund the Flexible Account, which supports transit service, bike and pedestrian infrastructure, and ferry operations.

The transportation package now awaits Gov. Bob Ferguson’s decision, with a deadline to sign or veto the bill by May 17.