Making 2025-2027 fiscal biennium operating appropriations.
What changed between versions
Entire Section 205 (DSHS Economic Services Program) was removed, eliminating approximately $3.57 billion in appropriations for WorkFirst/TANF cash assistance, child care subsidies, and related poverty reduction programs, along with all associated reporting and oversight requirements.
$40 million from the Climate Commitment Account for alternative fuel vehicle (EV) purchase incentives was removed from Section 133 (Commerce - Energy and Innovation), eliminating the department's EV program funding that had prioritized overburdened communities and low-income households.
A new Domestic Violence Co-Responder Account with $8,326,000 was added to Section 129 (Commerce - Community Services) for implementation of Substitute House Bill No. 1498.
Assisted living facility license renewal fees increased from $232 per bed to $383 (FY26) and $381 (FY27); nursing facility license fees increased from $718 per bed to $814 (FY26) and $834 (FY27), as stated in both Sections 203 and 204.
A new 2% rate increase effective July 1, 2025 was added for community residential service providers (supported living, group homes, etc.) totaling $10,722,000 state + $21,190,000 federal per year, with the full amount required to be used for direct support professional compensation increases.
$3,345,000 per year was added in Section 203(1)(t) for personal care services for up to 33 non-citizen clients who are ineligible for Medicaid upon discharge from acute care hospitals, prioritizing those already on the department's wait list.
State psychiatric hospital bed allocations changed significantly: Eastern State Hospital civil beds reduced from 192 to 162; Olympic Heritage facility changed from 72 beds at $68,937,000/year to 74 beds at $59,650,000/year; the 32-bed Clark county long-term inpatient facility ($18.7M-$27.4M) was replaced with only $298,000 for property maintenance.
Office of Public Defense (Section 115): The $10 million per year formula funding for counties and cities was increased to $13.6 million per year; a new $500,000/year 'parents for parents' program was added; a new $300,000 one-time grant for peer-led reentry services in eastern Washington was added; the State v. Blake funding structure was reorganized with a new $5,000/year emergency needs provision.
Office of Civil Legal Aid (Section 116): The $5 million Judicial Stabilization Trust Account for State v. Blake civil legal services was removed entirely; federal appropriation of $1,566,000 was removed; total appropriation decreased from $139,365,000 to $132,030,000.
Department of Commerce - Housing (Section 130): Apple Health and Homes Account reduced from $27,195,000 to $6,496,000; essential needs program increased from $65,310,000 to $68,550,000 per year; county homeless housing grants increased from $38,864,000 to $58,802,000 per year; a new $425,000/year co-location housing contract was added.
Department of Commerce - Local Government (Section 131): Federal appropriation increased from $39,490,000 to $55,565,000; Climate Commitment Account for local government climate planning increased from $15,000,000 to $22,544,000; a new $2,500,000/year digital navigator services grant program was added; 2026 World Cup security funding reduced from $5,500,000 to $2,750,000.
Department of Commerce - Energy and Innovation (Section 133): Public building energy audit program increased from $5,000,000 to $13,088,000; tribal/overburdened community engagement for renewable energy siting increased from $2,000,000 to $2,500,000; numerous new climate commitment items added including federal tax credit assistance ($10M), energy retrofit programs ($3.5M), battery storage guidance ($456K), and clean energy local government guidebook ($719K).
DSHS Developmental Disabilities (Section 203): Rainier School provisions expanded to require the department to support transition of residents into alternative settings if facilities close, with individualized transition plans; the property review now includes consideration of transferring ownership to a third party capable of continuing services.
Office of Financial Management (Section 136): A new Labor Relations Service Nonappropriated Account with $11,797,000 was added; a new $100,000 study of the Olympic Heritage behavioral health campus's future uses was added with a report due December 1, 2025.
Attorney General (Section 126): General Fund FY26 increased from $34,263,000 to $40,286,000; removed funding for SVP prosecution ($1,462,000/year), organized retail crime task force ($1,510,000/year), sexual assault kit initiative ($1,068,000/year), and legal matter management system ($5.8M+); added numerous new bill implementation items.
Department of Commerce - Community Services (Section 129): Community Reinvestment Account doubled from $30,000,000 to $60,000,000; Climate Commitment Account for energy assistance increased from $20,000,000 to $25,000,000; firearm safety office funding reduced from $9,575,000 to $8,618,000 per year with the $2M for additional prevention programs removed.
Department of Commerce - Economic Development (Section 132): Associate development organization funding reduced from $5,000,000 to $4,152,000 per year; Andy Hill cancer research endowment reduced from $24,220,000 to $22,220,000; a new cannabis social equity grant program was added for licensees issued after July 1, 2024.
Section 147 (Liquor and Cannabis Board) now requires the board to evaluate the cannabis social equity program by December 1, 2025, including examining license issuance, demographic data of licensed businesses, barriers to business success, and impact of siting restrictions, with a report to the governor and legislature.
Section 201 (DSHS) now requires the department to promptly notify the Attorney General upon receipt of requests from federal agencies or law enforcement for health care information, program eligibility information, or information about delivery of protected health care services to noncitizens that may impact expenditures.
The joint legislative executive committee on planning for aging and disability issues (Section 204(23)) was entirely removed from the passed version, eliminating the standing committee structure that had been providing recommendations on aging population policy.
