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Evergreen Ledger

SHB 2295

In Committee

House

Capital budget, supplemental

Concerning the capital budget.

This status may be delayed. See Action History below for the latest updates.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: February 25, 2026
Last Action: February 27, 2026
Status: H Rules R
Companion Bill:
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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This supplemental capital budget bill appropriates $5.7 billion for capital projects across state agencies during the 2025–2027 biennium, with a focus on expanding behavioral health facilities, supporting affordable housing, advancing clean energy and climate resilience, improving school infrastructure, and restoring natural resources. It reappropriates funds from prior budgets and adds new funding to address urgent needs in housing, behavioral health, and climate adaptation.

  • Appropriates $5.7 billion in total for capital projects across state agencies during the 2025–2027 biennium, including reappropriations from prior budgets.
  • Expands funding for behavioral health facilities, including crisis stabilization centers, inpatient treatment beds, and peer respite centers, with $129.8 million in new appropriations.
  • Provides $100 million for the Connecting Housing to Infrastructure Program to reduce utility connection fees for affordable housing developments in small cities and counties.
  • Increases the Housing Trust Fund appropriation to $828.5 million to support affordable housing construction, preservation, and repairs for low-income and special-needs populations.
  • Allocates $65 million for the Clean Energy Fund Program, including $34 million for tribal clean energy projects and $5 million for a Pacific Northwest national laboratory test bed.
  • Establishes a Housing Accelerator Framework to streamline housing development processes and reduce costs, with $350,000 for development.
  • Revises and increases funding for school seismic safety, small district modernization, and school infrastructure improvements, including lead pipe remediation and air quality upgrades.
  • Includes $1.65 billion for environmental cleanup, salmon recovery, parks, and natural resources, including Capitol Lake–Deschutes Estuary restoration and floodplain projects.
  • Repeals several outdated or completed projects and amends funding for existing programs across transportation, corrections, veterans’ affairs, and higher education.

Who is affected

  • Low- and moderate-income households — Low- and moderate-income households and families, especially those in underserved or rural areas, who benefit from affordable housing programs, utility fee waivers, and home rehabilitation grants.
  • People needing behavioral health services — Individuals with mental health conditions, substance use disorders, or behavioral health needs who require expanded community-based treatment facilities and crisis stabilization services.
  • Tribal communities — Tribal nations and communities that receive clean energy, housing, and infrastructure funding through targeted grants and programs.
  • Higher education institutions and their communities — Students, faculty, and staff at public universities and community/technical colleges who benefit from facility upgrades, energy efficiency improvements, and seismic safety projects.
  • State and local government agencies — State and local government agencies, including departments of transportation, ecology, natural resources, and corrections, that receive funding for infrastructure, environmental cleanup, and facility maintenance.
Effective: January 1, 2026Fiscal impact: The bill appropriates a total of approximately $5.7 billion for capital projects over the 2025–2027 biennium, including reappropriations and new funding. It projects future costs of $4.5 billion for the 2027–2029 biennium. The bill includes provisions for debt service, with estimated costs of $46.4 million in 2025–2027, $390.4 million in 2027–2029, and $585.0 million in 2029–2031.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 7:50 PM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)

  • The $66.7 million for community behavioral health grants—including crisis stabilization centers, peer respite centers, and facilities serving specialized populations like youth and people with dementia—directly expands access to life-saving care for people in crisis. The requirement to prioritize unserved/underserved areas and serve publicly funded and involuntarily committed individuals ensures the most vulnerable receive priority, reducing jail and ER utilization and improving outcomes for people with serious mental illness.

    HealthcarePeopleRef: Sec. 1004, subsection (5)

  • The $100 million for rapid conversion of multifamily housing into permanent supportive housing for people experiencing sheltered/unsheltered homelessness—including families, unaccompanied youth, and people with disabilities—is a high-impact, evidence-based intervention. The focus on projects that rapidly move people into housing (e.g., from encampments or public spaces) directly reduces mortality and improves public health and safety, especially for the most marginalized populations.

    HousingPeopleRef: Sec. 1006, subsection (1)(g)

  • The $100 million Connecting Housing to Infrastructure Program waives utility connection fees for affordable housing developments in small cities and counties, directly reducing development costs and enabling more units to be built at lower rents. This addresses a major barrier to affordable housing in underserved areas and benefits low- and moderate-income households who would otherwise pay disproportionately high utility costs.

    HousingPeopleRef: Sec. 1005, subsection (1)(a)

  • The $50 million for affordable housing for people with intellectual and developmental disabilities (IDD) is a targeted, high-need intervention that addresses a critical gap in Washington’s system. By prioritizing individuals exiting residential habilitation centers, this funding supports community integration, reduces institutionalization, and improves quality of life for a highly vulnerable population.

    HousingPeopleRef: Sec. 1006, subsection (1)(b)

  • The $26 million for clean energy grants—particularly the priority given to vulnerable populations and overburdened communities—supports climate resilience and energy affordability in frontline communities. Projects that reduce energy costs and emissions benefit low-income households through lower utility bills and improved air quality, especially in high-pollution areas like the Puget Sound inversion zone.

    EnvironmentPeopleRef: Sec. 1007, subsection (1)
Potential Concerns (5)

  • The $100 million appropriation for permanent supportive housing (PSH) under the Housing Trust Fund is targeted at people experiencing homelessness with complex needs, but the program is administered through a competitive grant process that prioritizes projects serving extremely low-income households. While this directly benefits people in crisis, the scale of the investment ($100M) is modest relative to the estimated $1.2B+ needed annually to address Washington’s PSH gap, limiting its overall impact on systemic housing insecurity.

    HousingPeopleRef: Sec. 1006, subsection (1)(c)

  • The $30 million Connecting Housing to Infrastructure Program waives utility connection fees for affordable housing in small cities and counties (pop ≤150,000), but excludes most of the Puget Sound region (where most low-income households face high utility costs). This disproportionately benefits rural and inland communities, leaving urban and suburban low-income households in high-cost areas with less support.

    HousingPeopleRef: Sec. 1005, subsection (2)(a)

  • The $61.7 million for homeownership projects for first-time low-income households (income ≤80% AMI) is structured as construction awards capped at $10M per project, which favors larger, well-resourced nonprofits and local governments over smaller community land trusts or mutual housing associations. This design limits access for the most marginalized households who may not qualify for traditional mortgages and cannot absorb upfront costs, even with down payment assistance.

    HousingPeopleRef: Sec. 1006, subsection (1)(d)

  • The $100 million for affordable housing preservation projects prioritizes buildings older than 15 years serving very low-income populations, but the requirement for a capital needs assessment before contract execution creates administrative delays that could stall urgent repairs. In practice, this may benefit property managers and developers who can absorb delays over the most vulnerable tenants facing displacement due to rent hikes or building decay.

    HousingPeopleRef: Sec. 1006, subsection (1)(h)

  • The $34 million for tribal clean energy projects is a positive step toward energy justice, but the funding is capped at $34M and contingent on tribal application, which may not reach smaller or less-resourced tribes with limited grant-writing capacity. This risks reinforcing existing disparities where larger, more organized tribes capture most of the benefit, while smaller or rural tribal communities remain underserved.

    EnvironmentPeopleRef: Sec. 1007, subsection (8)

Who Is Most Affected

Low- and moderate-income householdsMixed Impact

Low- and moderate-income households benefit from expanded affordable housing supply, utility fee waivers, and home rehabilitation grants. However, the homeownership-focused programs may exclude the very lowest-income renters who cannot meet down payment or credit requirements, limiting their direct benefit.

People needing behavioral health servicesPositive Impact

People with serious mental illness, substance use disorders, or behavioral health crises benefit significantly from expanded crisis stabilization centers, peer respite services, and inpatient treatment beds. The focus on serving publicly funded and involuntarily committed individuals ensures access for the most severely affected, reducing jail stays and ER visits.

Tribal communitiesPositive Impact

Tribal communities benefit from $34 million in clean energy grants and targeted housing programs, supporting energy sovereignty and climate resilience. However, the funding is competitive and may not reach all tribes equally, especially those with limited grant-writing capacity or remote locations.

Higher education institutions and their communitiesMixed Impact

Higher education institutions benefit from seismic safety upgrades, energy efficiency retrofits, and facility modernization. While this improves campus safety and sustainability, the largest allocations go to flagship universities (e.g., UW, WSU), potentially leaving smaller community and technical colleges with fewer resources relative to need.

State and local government agenciesMixed Impact

State and local government agencies benefit from capital funding for infrastructure, environmental cleanup, and facility maintenance. However, the reappropriation structure and project-specific funding may create administrative burdens and limit flexibility for agencies managing complex, multi-year projects.