OLYMPIA — House and Senate leaders announced their final agreement Wednesday on the state’s 2026 supplemental capital budget. The $889 million budget funds construction projects and infrastructure across Washington and makes major investments in school construction, affordable housing, flood response and prevention, and more.

Details of the budget are available on fiscal.wa.gov.

“The capital budget shows how good government can work. We build the infrastructure that people across the state can see, touch, and feel in their local community,” said Senator Yasmin Trudeau (D-Tacoma), the vice chair of the Senate Ways & Means Committee for the capital budget. “Our approach has always been rooted in bipartisanship, collaboration, and recognizing the diversity of our state and the broad needs of all our people. This budget delivers on that promise, creating jobs today and building towards the needs of tomorrow.”

“We don’t fund line items on a page—we fund local dreams people have worked on for years, projects that are blueprints for stronger communities and meeting the needs of more Washingtonians,” said Rep. Lisa Callan (D-Issaquah), Acting Chair of the House Capital Budget Committee.  “We are adding to our record investment in housing, making schools safer, responding to floods, and investing in cleaner air and water. What we’ll build, together, will serve the good people of Washington state for generations.”

Affordable housing

The budget builds upon the record-setting investment into affordable housing and homelessness prevention in the 2025-27 budget with an additional $200 million in housing and homelessness funding, including $123 million for the Housing Trust Fund, supporting affordable housing projects across Washington state.

School construction

The budget appropriates a total of $109 million for school construction, including $71 million for building modernization and improvement for small school districts and tribal compact schools and $13.9 million for seismic safety upgrades. The budget also structures the small district and tribal compact school modernization program to link current planning grants to future construction grants, so that districts are not left with plans for buildings but no funding to construct them.

It also begins a new pilot program to provide school construction assistance funding for school districts with low property values that must run levies and bonds at high property tax values to raise sufficient funds for their building needs, similar to the Local Effort Assistance program, which provides funds for the operating costs of these districts.

Flood response and prevention

The budget responds to the flooding disaster of December 2025 with $41 million for recovery and prevention, including grants to cover the cost of debris and waterway clearance, levee and floodplain investments on the Nooksack, Green, and Samish rivers, repairs to flood damage in the city of Pacific, and a needs and risk assessment in Whatcom, Skagit, Snohomish, King, Pierce, and Lewis counties to help identify the highest-value flood preparedness projects for funding in future years.

Climate Commitment Act

The budget includes a major investment of money from the Climate Commitment Act into clean energy and environmental protection, including $25 million for initial capitalization of Washington Builds, a new revolving-loan program that makes low-interest funding directly available to families and businesses for clean energy upgrades to their buildings. It provides grants to tribal governments for clean energy projects, makes clean energy upgrades to higher education institutions, supports climate-smart agricultural equipment like anaerobic digesters, and more.

Local and regional projects

The budget also funds many exciting local and regional projects, details of which can be found by legislative district on fiscal.wa.gov.