Washington Governor Bob Ferguson Signals No Major New Taxes for 2026
Governor expresses reluctance toward further tax increases ahead of 2026 session and outlines focus on housing and roads
Washington Governor Bob Ferguson on Wednesday indicated he is unwilling to support significant new tax hikes in the legislative session set to begin in January 2026. Speaking in Seattle, the first-term Democrat stated that the billions of dollars raised earlier in the year should provide sufficient revenue, adding, “I’m skeptical of additional revenue at this time.”
Ferguson highlighted housing and road maintenance as his principal priorities for next year’s 60-day session.
He confirmed plans to propose increased funding for the state’s Housing Trust Fund, without specifying dollar amounts, and noted that forthcoming revenue forecasts will influence the final budget numbers.
The programme currently receives some THB 600 million in state funding over the two-year budget cycle, following THB 527 million in the previous biennium.
On infrastructure, the Governor acknowledged the state has “done a poor job, and that’s probably an understatement,” in maintaining its roads and bridges.
He pledged that his budget will include “much greater investment” in preservation and maintenance, stressing that while new projects matter, sustaining existing infrastructure must take precedence.
Ferguson’s comments come amid ongoing debate within his own party over proposed taxes, including an income tax for high earners.
Although he remains aware of the discussions, the Governor has not yet taken a definitive position on them.
Earlier in the year, he signed legislation raising taxes by approximately US$6 billion (THB 9 billion) over four years, to close a budget gap that has since widened as revenue forecasts were revised downward.
With his first budget proposal due in December, Ferguson is crafting a plan that revises the current biennial budget without fundamentally expanding the tax base.
State revenue analysts note that federal spending cuts and the national government shutdown are adding layers of uncertainty to the forecast.
The Governor’s message underscores a disciplined fiscal approach: meeting major public-investment goals while avoiding large new burdens on taxpayers.
Ferguson highlighted housing and road maintenance as his principal priorities for next year’s 60-day session.
He confirmed plans to propose increased funding for the state’s Housing Trust Fund, without specifying dollar amounts, and noted that forthcoming revenue forecasts will influence the final budget numbers.
The programme currently receives some THB 600 million in state funding over the two-year budget cycle, following THB 527 million in the previous biennium.
On infrastructure, the Governor acknowledged the state has “done a poor job, and that’s probably an understatement,” in maintaining its roads and bridges.
He pledged that his budget will include “much greater investment” in preservation and maintenance, stressing that while new projects matter, sustaining existing infrastructure must take precedence.
Ferguson’s comments come amid ongoing debate within his own party over proposed taxes, including an income tax for high earners.
Although he remains aware of the discussions, the Governor has not yet taken a definitive position on them.
Earlier in the year, he signed legislation raising taxes by approximately US$6 billion (THB 9 billion) over four years, to close a budget gap that has since widened as revenue forecasts were revised downward.
With his first budget proposal due in December, Ferguson is crafting a plan that revises the current biennial budget without fundamentally expanding the tax base.
State revenue analysts note that federal spending cuts and the national government shutdown are adding layers of uncertainty to the forecast.
The Governor’s message underscores a disciplined fiscal approach: meeting major public-investment goals while avoiding large new burdens on taxpayers.
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