Lawmakers focused on preservation and maintenance of roads, bridges and ferries in the $16.6 billion supplemental transportation budget with investments over 6 years. The adopted budget includes a $1.2 billion increase over the 2025 enacted budget and relies on $800 million in new general obligation bonds.
Maintenance and Preservation
| Program | 25-27 | 27-29 | 29-31 | Total |
|---|---|---|---|---|
| Highway maintenance | 40m | 80m | 80m | 200m |
| Preservation/Flood recovery | 300m | 500m | 500m | 1,375b |
| Ferry preservation | 4m | 8m | 16m | 28m |
Maintenance and Preservation related budget proviso language:
- $400k for WSDOT report to joint transportation committee by 9/1/26, on maintenance and preservation needs, including cost-effective delivery utilizing public-private partnerships & public education program
- Requires WSDOT report on project costs & timeline for priority bridge preservation & replacement projects
Transportation Revenue
Declining fuel consumption continues to reduce gas tax revenues. At the end of the 2025 legislative session, new revenue adopted by the Legislature was projected to generate $4.4 billion over six years. However, each revenue forecast since June 2025 has lowered that projection, resulting in a total reduction of $842.5 million. In other words, about 20 percent of the anticipated increase in resources has already been offset by declining revenue projections. The gas tax accounts for roughly 40 percent of the revenue that supports the transportation budget.
Ferry Investments
The Legislature did not move forward with Governor Ferguson's budget proposal to build an additional 3 new ferries for a total of 6 new vessels. Funding was provided for the following ferry investments:
- $29m for accelerated funding to ensure adequate resources for construction of 3 new hybrid-electric vessels currently under contract with Eastern Shipbuilding Group
- $31m for electrification of 3 terminals
- $28m for ferry preservation over 6 years
- $2m for emergent preservation response team to quickly address vessel repairs
- $750k for work group to develop long-term, financially stable vessel preservation and replacement, terminal improvements and ferry asset management (see below for details):
- Evaluation of leasing hydrogen powered ferries
- Assessing in-state bid credit for vessel construction
- $500k for state owned dry-dock feasibility study
- $17 million to close out the program for conversion of vessels to electric hybrid propulsion (no more vessels will be converted to hybrid electric at this time, a future Legislature will need to address repowering vessels Tacoma and Puyallup)
- $1.9 million for the Eagle Harbor preservation capacity expansion
Safety Investments
- $100m safety-focused preservation along high-risk corridors
- $500k Tribal safety support grants
- $600k to purchase telematics data that provides anonymized information on vehicles speeds and driving behaviors
- $250k develop Megaproject Safety Program
- $234k to report crash data and wrong-way driving violations at locations where wrong-way driving prevention strategies have been implemented
- $200k for the Traffic Safety Commission to work with the Department of Licensing and Washington State Patrol to evaluate and make recommendations for policies to improve ignition interlock device compliance
- Direction that WSDOT must, within existing resources, complete an analysis of bridge strikes in Washington state within the last three years, and review best practices of interventions utilized by other jurisdictions
- Direction that the Traffic Safety Commission designate an older driver safety awareness week and the Department of Licensing create a comprehensive website that includes informational resources on aging and driving and an online self-assessment tool for older drivers
- Establishment of an older driver reduced fee identicard program for currently licensed drivers aged 70 years
Transit Oriented Development Investments:
- $1m for WSDOT to conduct a SEPA review and issue a programmatic final environmental impact statement evaluating zoning changes and related issues for jurisdictions required to implement transit-oriented development. PSRC understands Department of Commerce will be conducting this work in coordination with WSDOT.
- The operating budget includes $1.3m for the Department of Commerce to provide technical assistance and review regulations to implement HB 1491 Transit Oriented Housing Development, adopted in 2025.
Other transportation investments:
- Restores $77m for regional mobility grants & rideshare grants
- $5m for Amtrak Youth Ride Free
- $148m for Department of Commerce to implement SB 6309 High-capacity transit permits in operating budget
- $6.5m for Transportation Demand Management, programs that reduce car dependency and support walking, biking and transit
- $3.1m for King County Metro and $200k Kitsap transit pilot program for affordable transit pass for community and technical colleges
- $30m counties and $15m cities to address December 2025 weather events
- $100k for the JTC to review options for long-term financial sustainability of the transportation budget
Learn more:
- Supplemental Transportation Budget Summary – Good short overview of 2026 transportation investments
- All Supplemental Transportation Budget Documents
- SB 6005 Supplemental Transportation Budget Bill
- HB 2711 Transportation Resources – makes chnages needed to implement provisions adopted in 2025 session and other policy adjustments
- SB 6225 Authorizing bonds for transportation funding
- SB 6354 Advancing transportation electrification by expanding access to electric vehicles already being sold in Washington and increasing associated funding – allows direct sales of electric vehicles
Ferry Work Group Language (SB 6005 Sec. 203(17) p. 16-19)
$750,000 of the motor vehicle account—state appropriation is for the joint transportation committee to convene a work group to consider options for long-term, financially sustainable vessel preservation and replacement, terminal improvements, and ferry asset management, and to conduct additional research as described in this subsection.
(a) The work group must consist of, but is not limited to, the following members:
(i) The deputy secretary of transportation for Washington state ferries or their designee;
(ii) The joint transportation committee executive committee members or their designees, and two members from both the house of representatives transportation committee and the senate transportation committee, appointed by the executive committee of the joint transportation committee; and
(iii) A representative from the office of financial management.
(b) The committee may contract with a third-party consultant for work group support. The committee shall contract with consultants specializing in naval architecture and marine engineering to provide neutral technical expertise to the work group.
(c) In considering long-term vessel sufficiency and ferry asset management, the work group shall:
(i) Evaluate procurement and contract delivery options, including leasing, as well as parameters and schedules needed to avoid degradation of service;
(ii) Examine alternative vessel types, propulsion systems, and fuels, taking into consideration environmental benefits and impacts, life-cycle costs, and risks associated with technology and design alternatives;
(iii) Evaluate options for upgrading and modifying existing aging vessels and consider to what extent upgrading and modifying existing aging vessels is a viable supplemental strategy to avoid service interruptions and effectively use available resources;
(iv) Evaluate in-state versus out-of-state shipyards for vessel construction, including consideration of shipyard capacity; and
(v) Evaluate sustainable funding and financing options, including leasing, certificates of participation, and bonding, that prioritize the avoidance of both a multiyear gap in service and loss of service delivery. The work group shall evaluate the financial feasibility of these options, both in ferries related accounts and the broader state transportation budget, taking into consideration other constraints in meeting long-term delivery expectations.
(d) Support for the work group must be provided by staff from the joint transportation committee, office of program research, senate committee services, the office of financial management, and the department of transportation.
(e) The work group shall report its initial findings to the governor and the transportation committees of the legislature by December 15, 2026.
(f) (i) In consultation with the work group, the joint transportation committee must contract with an independent third party to conduct a study and make recommendations to modify or maintain the credit provided by the department of transportation on bid proposals for hybrid-diesel electric ferry vessels constructed in the state of Washington. The study must consider economic and cost factors including, but not limited to:
(A) The economic and revenue loss to the state of Washington from constructing vessels outside the state of Washington; and
(B) Additional costs of transport, potential delay, and owner oversight incurred for construction at shipyards outside of Washington.
(ii) Final recommendations from this independent study must be provided to the department, the office of the governor, and the transportation committees of the legislature by June 30, 2027.
(g) (i) In consultation with the work group, the joint transportation committee must contract with an independent third party to evaluate the costs and benefits associated with the use of a short- or long-term lease of a hydrogen or hybrid hydrogen powered vessel for the state ferry system. The evaluation must include an analysis of whether hydrogen fueling would assist in electrification of the state ferry fleet, and whether alternative procurement or lease-to-purchase options for hydrogen vessels would assist the state in meeting the state's goals for stability and reliability of the ferry system.
(ii) The joint transportation committee must consult with companies that design, build, and lease hybrid vessels, including hydrogen-powered vessels. For this study, it is the intent of the legislature that the joint transportation committee provide a report with findings and recommendations to the governor and the transportation committees of the legislature by December 1, 2027.