Washington Gov. Bob Ferguson addressed both houses of the Washington Legislature Tuesday.

OLYMPIA, Wash. — While delivering his State of the State address on Tuesday, Gov. Bob Ferguson said his proposed budget is “laser focused” on improvements as Washington continues to grow.

Ferguson said investments need to be made in infrastructure, making the tax system more fair and addressing the housing crisis. His comments came a day after the 2026 legislative session got under way. 

Ferguson said his budget includes an investment of more than $1 billion to repair aging bridges, $164 million to pave hundreds of miles of road next summer and $756 million for the next 10 years, and another $1 billion investment to build more ferries and repair current ferries.

Ferguson’s budget also invests $244 million more into affordable housing.

Citing an “upside-down” tax system, Ferguson doubled down on the proposed “Millionaires Tax.” Under the proposal, which will be presented to the Legislature this session, people who make $1 million of income in a year would be taxed. It would not impact those whose net worth reaches $1 million. If adopted, it couldn’t go into effect until 2029. The tax would not only be used to help low-income families, but also boost support for small businesses and K-12 education.

Ferguson’s comments come as the state faces a $2.3 billion budget gap. 

Ferguson plans to address the current gap with cuts, including to administrative and travel, grant funding, nursing home and preschool subsidies, and public health. Additionally, state universities would see 1.5% in cuts, with a higher 3% cut planned for the University of Washington and Washington State. 

Despite those cuts, the state would still need to use around half of its “Rainy Day Fund,” to cover its costs. 


Here are key dates in the legislative session: 

Feb. 4: Policy committee cut-off — last day for reports to be read in, except for House fiscal committees and Senate Ways & Means

Feb. 9: Cut off for House fiscal committees and Senate Ways & Means

Feb. 17: Last day to consider bills in their house of origin

Feb. 25: Policy committee cut off for bills from the opposite house, except for House fiscal committees and Senate Ways & Means

March 2: Cut off for opposite house fiscal committees

March 6: Cut off at 5 p.m. for bills from the opposite house, with a few exceptions including budget issues

March 12: Last day of session