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flag Washington's governor proposes a $2.3B budget plan using reserves, carbon revenues, and cuts, avoiding new taxes.

flag Washington Governor Bob Ferguson has proposed a supplemental budget to address a $2.3 billion shortfall for the 2025-27 fiscal biennium, relying on $1 billion from the state’s rainy day fund, $600 million from carbon auction revenues, and $800 million in spending cuts. flag The plan avoids new taxes, eliminates tax breaks for data centers and drug wholesalers, and maintains a pledge not to implement a proposed millionaire’s tax. flag It increases overall spending to nearly $79 billion, funds $3 billion for transportation infrastructure, and allocates $244 million for housing. flag The budget is balanced through June 2027 with $140 million in reserves. flag The legislative session begins January 12, 2026.

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