The 2025 Legislative Session is over, and the Governor now has before him a two-year budget that begins July 1, 2025. Confronted with a significant gap between expected revenues and the carry-forward budget for the coming biennium, the Legislature adopted a range of cuts, revenue increases and, in a very few cases, enhancements to devise a $77.8 billion plan. Details of the operating budget here. This is not the final budget, however, which still must be reviewed and signed by the Governor, who has the authority to veto specific budget items while still approving the overall budget.

Early Childhood Education and Child Care Advances Postponed
As expected, expansion of the Early Childhood Education Assistance Program and the Working Connections Child Care were postponed into later budget years. (See S.B. 5752). For more specific details of what was funded and what was not in this area, checkout this budget spreadsheet analysis by Start Early. 

Legislation and Capital Budget Help Boost Housing Supply Prospects
Given the tight budget year, housing issues fared pretty well. Sen. Jessica Bateman (D-Olympia), chair of the Senate Committee on Housing, declared in a recent press release that this year was “one of the most productive sessions on housing affordability our state has seen. Sen. Bateman cited the passage of H.B. 1217 which caps annual rent increases to a maximum of 10 percent and the $605 million appropriation for Housing Trust Fund projects as key highlights. She also viewed the passage of the following bills as important to reducing barriers to constructing and accessing affordable housing: HB 1096, HB 1403, HB 1491, HB 1696, SB 5148, SB 5184, SB 5471.

No State Funding for Imagination Library of Washington; Reduced Funding for WA211
One of our priorities for this year was continued funding for the Imagination Library. Unfortunately, as a relatively new program, Dolly Parton's Imagination Library, which puts age-appropriate books into the hands of children from birth to five, was one of the many tough decisions made by legislators to help balance the budget for the coming biennium. In response to the loss of state funding, Imagination Library of Washington is urgently pursuing emergency gap funding to sustain monthly book deliveries for young children statewide. ILWA is committed to keeping this vital and impactful early literacy program alive for Washington families while working toward long-term funding solutions. On another front, Washington 211 is funded $1 million per year in the upcoming budget–a decrease from last year’s budget.

Community Reinvestment Project Receives $60 Million for Next Biennium
Previously funded at $200 million, the Community Reinvestment Project, managed by the Washington State Department of Commerce, received $60 million in the budget now before the Governor. This project is designed to uplift communities disproportionately harmed by the war on drugs. Last year, the United Ways of the Pacific Northwest received a grant from this project to work with local United Ways in running an asset building initiative in underserved communities.