The Legislature passed the 2026 Supplemental Transportation Budget, and it addresses priorities articulated by AGC. It provides additional and more stable funding for preservation, keeps major projects moving, and increases transportation spending by roughly $1.2 billion compared to the previously enacted 2025–27 transportation budget.
Preservation
The conference committee report (the compromise between differing House and Senate approaches) provides roughly $300 million in additional preservation funding for the current biennium, meaning the 2026 paving season will not be missed. It also increases preservation spending in the six-year transportation financial plan by roughly $500 million in each of the 2027-29 and 2029-31 biennia.
WSDOT told the Legislature it had about $164 million in paving projects ready for the 2026 construction season that would likely not proceed without new funding. The Legislature ultimately provided significantly more than that amount.
The preservation funding increase was made possible through separate legislation providing $800 million in new bonding authority for WSDOT. The question of bonding was one of the most contentious issues of the legislative session. The Senate Transportation Committee proposed $1.5 billion in new bonding authority, while the House Transportation Committee initially opposed new bonding. AGC supported the bonding proposal. The final compromise provided $800 million in new preservation bonding authority.
With the bonding authority secured, preservation work can now be planned more reliably through 2031.
Projects
As expected in a supplemental budget, no entirely new projects are added. Instead, the bonding supports projects already underway or planned, most notably those in the Connecting Washington and Move Ahead Washington transportation packages.
Some projects have revised delivery timelines recommended by WSDOT, primarily to reflect updated construction sequencing and staging rather than funding shortages. In these cases, some project spending is shifted into later biennia to better match WSDOT’s delivery schedule.
Projects affected include:
- I-405 / SR-522 to I-5 Capacity Improvements — Original planning assumed completion around 2030. Updated schedules move some construction phases into 2031–2032 due to design refinements, procurement adjustments, and corridor staging.
- US-395 North Spokane Corridor (I-90 Connection) — Original completion expectations were around 2029. Updated timelines extend the final segment into 2030–2031 due to right-of-way, staging, and coordination with the I-90 interchange construction.
- SR-9 / Marsh Road to 2nd Street Vicinity Widening (including bridge construction) — Original schedules anticipated completion in the late 2020s. Updated timelines move completion to around 2030 as environmental review, design development, and bridge construction sequencing evolve.
- Interstate Bridge Replacement (IBR), formerly the Columbia River Crossing — Original planning anticipated major construction in the late 2020s with completion around 2031. Updated schedules concentrate major construction in 2028–2033, reflecting federal permitting timelines and coordination with Oregon.
The Legislature also increased the bonding ceiling for the SR-520 corridor project by roughly $500 million, allowing the state to issue additional bonds if needed to complete the project. This is not new bonding authority but an expansion of existing bond authorization.
Interesting Tidbits
Supplemental budgets often include “provisos” establishing studies or program initiatives. Among those included:
- The Legislature funded several studies examining transportation-related liability and risk exposure, signaling growing concern that expanding liability costs could affect project delivery, contracting practices, and overall transportation program affordability.
- $3 million for WSDOT to begin implementing a low-carbon transportation materials program to reduce embodied carbon in transportation construction materials.
- $500,000 for WSDOT to study the feasibility of procuring and delivering the U.S. Highway 2 Trestle project using a public-private partnership (P3) model.
- The six-year plan anticipates about $100 million in 2029-31 for additional safety-focused preservation work along high-risk corridors.
- $250,000 for WSDOT to develop an implementation plan for a new Megaproject Safety Program.
Looking Ahead
No one assumes this supplemental resolves all challenges facing the transportation system. Recent quarterly revenue forecasts have shown declining transportation revenues, largely due to reduced fuel consumption.
Even with increased preservation investments, the budget still falls short of the levels needed to bring Washington’s highway system to a full state of good repair, according to WSDOT analyses.
The supplemental also includes limited new funding for ferry needs beyond maintenance and preservation. The Legislature did not adopt the Governor’s recommendation to begin construction of three additional ferries beyond the vessels already underway. Ferry system needs will likely receive greater attention next year.
Finally, WSDOT estimates that completing the court-ordered fish passage barrier removal program may require roughly $5 billion in additional funding in future years, another issue expected to receive significant legislative attention.
Here’s a link to the Legislature’s narrative summary.
Here’s a link to the current list of projects and funding timelines.
For more information, contact AGC Chief Lobbyist Jerry VanderWood.