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Evergreen Ledger

SSB 6003

Signed

Senate

Capital budget, supplemental

Concerning the capital budget.

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: April 1, 2026
Status: C 259 L 26
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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 $4.8 billion for capital projects across Washington State through June 30, 2027, focusing on behavioral health infrastructure, affordable housing, clean energy, and public facility upgrades. It significantly increases funding for behavioral health services, expands housing programs for low-income and vulnerable populations, and supports decarbonization and climate resilience projects. The bill amends and reappropriates funds from the 2025 capital budget, repeals several outdated provisions, and adds new requirements for equity, sustainability, and project oversight.

  • Appropriates $4.8 billion for capital projects through June 30, 2027, including $2.3 billion for the State Building Construction Account and $1.2 billion for the State Taxable Building Construction Account.
  • Provides $129.8 million for behavioral health facility grants, including crisis stabilization centers, long-term treatment beds, and peer respite centers, with geographic distribution and priority for underserved areas.
  • Allocates $100 million for the Connecting Housing to Infrastructure Program to support affordable housing by covering utility connection fees and street improvements for low- and moderate-income housing.
  • Doubles the Housing Trust Fund appropriation to $828.5 million for new construction, acquisition, and rehabilitation of affordable housing, with specific set-asides for farmworkers, people experiencing homelessness, and people with intellectual/developmental disabilities.
  • Funds clean energy and decarbonization projects, including $65 million for the Clean Energy Fund, $12.5 million for the Washington State Green Bank, and $5 million for multifamily building efficiency upgrades.
  • Includes $25.2 million for the Capitol Lake–Deschutes Estuary Restoration project to improve water quality and plan long-term ecosystem restoration.
  • Repeals six sections of prior law (e.g., 2025 c 414 ss 1030, 3117, 6175, 6238, 6353, 8020) and amends over 100 sections to adjust funding levels and project details.
  • Requires compliance with prevailing wage, environmental review, tribal consultation, and high-performance building standards for most projects, and mandates 10-year holding periods for capital improvements.

Who is affected

  • Low- and moderate-income households — Low- and moderate-income households seeking affordable housing, especially those in rural or underserved areas, will benefit from increased funding for housing construction, acquisition, and infrastructure support.
  • Behavioral health service providers — Community hospitals, behavioral health providers, and crisis service organizations will receive grants to expand behavioral health capacity, including beds for crisis stabilization, long-term treatment, and substance use services.
  • Tribal nations and Native-serving organizations — Tribal nations and organizations serving Native communities will receive dedicated funding for affordable housing, clean energy, and infrastructure projects, with specific set-asides for tribal housing and cultural projects.
  • State agencies and public institutions — State agencies and public institutions (e.g., universities, state hospitals, correctional facilities) will receive funding for building upgrades, energy system replacements, seismic safety improvements, and ADA compliance.
  • Local governments and utility districts — Local governments and public utility districts will receive grants to reduce or waive utility connection fees for developers building affordable housing, helping to lower housing costs.
Effective: 2026-01-07Fiscal impact: The bill appropriates $4.8 billion in total for the 2025-2027 biennium, including $2.3 billion from the State Building Construction Account, $1.2 billion from the State Taxable Building Construction Account, and $1.3 billion from other accounts (e.g., Climate Commitment Account, Drinking Water Assistance Account). It also projects $3.2 billion in future biennia costs, primarily for debt service and ongoing operations. The bill includes significant reappropriations from prior-year capital budgets and adds new funding for behavioral health, clean energy, housing, and infrastructure projects.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 9:32 PM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)

  • The bill appropriates $129.8 million for behavioral health facility grants, with explicit priority for underserved areas and populations—including people on civil commitments, youth, and those with co-occurring disorders. This directly expands access to critical mental health and substance use services for Washingtonians who currently face long wait times or travel burdens to receive care. The requirement for 10-year facility holding periods ensures long-term public benefit from this investment.

    HealthcarePeopleRef: Sec. 1004 (Behavioral Health Facilities, $129.8M)

  • The $100 million Connecting Housing to Infrastructure Program directly reduces barriers to affordable housing development by covering utility connection fees and street improvements—costs that often prevent or delay projects, especially in rural and small communities. This directly lowers housing costs for low- and moderate-income households and supports economic diversity in communities that have historically excluded lower-income residents.

    HousingPeopleRef: Sec. 1005 (Connecting Housing to Infrastructure Program, $100M)

  • Doubling the Housing Trust Fund to $828.5 million—including $216.77 million from the State Building Construction Account and $530.73 million from the State Taxable Building Construction Account—represents the largest state investment in affordable housing in a decade. The set-asides for farmworkers, people experiencing homelessness, and people with intellectual/developmental disabilities ensure that the most vulnerable populations benefit directly. The 20% set-aside for “by and for” organizations (as defined by the Office of Equity) further prioritizes BIPOC-led and community-driven housing initiatives.

    HousingPeopleRef: Sec. 1006 (Housing Trust Fund, $828.5M)

  • The bill allocates $65 million for clean energy projects—including $31 million from the State Building Construction Account and $34 million from the Climate Commitment Account—with explicit priority for vulnerable populations and overburdened communities. An additional $5 million funds decarbonization of affordable multifamily buildings, directly reducing energy burdens for low-income households while cutting greenhouse gas emissions. These investments align with Washington’s climate goals and improve public health in communities disproportionately affected by pollution.

    EnvironmentPeopleRef: Sec. 1007 (Clean Energy Fund, $65M) & Sec. 1013 (Multifamily Bldg Efficiency Grants, $5M)

  • The bill includes prevailing wage, environmental review, tribal consultation, and high-performance building standards—requirements that support good jobs and responsible development. While these raise project costs slightly, they ensure that public investments create quality employment opportunities for construction workers and support long-term economic stability. The 10-year holding period requirement also ensures that capital investments remain in the public interest for a decade, preventing speculative conversion to market-rate housing.

    Business & EmploymentPeopleRef: Sec. 1006 (Housing Trust Fund, $828.5M) & Sec. 1005 (Connecting Housing to Infrastructure, $100M)
Potential Concerns (5)

  • The bill increases funding for behavioral health facilities, including crisis stabilization centers and long-term treatment beds, which can improve public safety by reducing crime associated with untreated mental illness and substance use disorders. However, the bill does not include dedicated funding for staffing, training, or retention of qualified behavioral health professionals, which limits the effectiveness and sustainability of new capacity. Without adequate staffing, new facilities may operate below capacity or experience high staff turnover, reducing their public safety impact.

    Public SafetyRef: Sec. 1004 (Behavioral Health Facilities, $129.8M)

  • The bill allocates $100 million for the Connecting Housing to Infrastructure Program to reduce utility connection fees for affordable housing, but the program is limited to jurisdictions that impose sales and use taxes (i.e., most urban and suburban areas), excluding many rural communities where housing affordability is also a critical issue. This geographic limitation reduces the program’s reach and may exacerbate regional disparities in housing access.

    HousingRef: Sec. 1005 (Connecting Housing to Infrastructure Program, $100M)

  • The bill significantly increases the Housing Trust Fund to $828.5 million, but $530.73 million of that amount comes from the State Taxable Building Construction Account, which is funded by property taxes. This means the cost of the expansion is partially borne by property owners—including many middle-income homeowners—while the benefits are concentrated among low-income households. This creates a modest regressive funding mechanism that could increase property tax burdens for working families.

    HousingRef: Sec. 1006 (Housing Trust Fund, $828.5M)

  • The bill funds clean energy projects, including $31 million from the State Building Construction Account and $34 million from the Climate Commitment Account. While this supports decarbonization, the bill does not include enforceable local hiring or wage requirements for clean energy construction projects beyond general prevailing wage provisions, potentially limiting job quality and local economic benefits for working-class communities.

    EnvironmentRef: Sec. 1007 (Clean Energy Fund, $65M)

  • The bill includes a 10-year holding period requirement for capital improvements, which helps ensure long-term affordability but may reduce flexibility for providers to adapt to changing community needs or exit the affordable housing market if operations become unsustainable. This inflexibility could limit innovation and responsiveness to evolving service demands over time.

    HousingRef: Sec. 1006 (Housing Trust Fund, $828.5M) & Sec. 1005 (Connecting Housing to Infrastructure, $100M)

Who Is Most Affected

Low- and moderate-income householdsPositive Impact

Low- and moderate-income households—especially those in rural or underserved areas—will benefit significantly from increased access to affordable housing and utility fee reductions. The bill’s targeted set-asides for farmworkers, people experiencing homelessness, and people with intellectual/developmental disabilities ensure that the most vulnerable populations receive direct support. However, the reliance on property tax revenue for part of the Housing Trust Fund may place modest upward pressure on property taxes for middle-income homeowners.

Behavioral health service providersPositive Impact

Behavioral health providers—including community hospitals, crisis stabilization centers, and peer respite programs—will receive substantial new funding to expand capacity. The bill’s requirement for geographic distribution and priority for underserved areas ensures that rural and marginalized communities benefit. However, providers must commit to 10-year holding periods and meet strict licensing requirements, which may strain smaller or under-resourced organizations.

Tribal nations and Native-serving organizationsPositive Impact

Tribal nations and Native-serving organizations receive dedicated funding for affordable housing, clean energy, and infrastructure projects, with specific set-asides for tribal housing and cultural projects. The bill mandates consultation with tribes on clean energy and housing programs, strengthening tribal sovereignty. However, the $100 million Housing Trust Fund includes only a 10% set-aside for tribal projects, which may not fully reflect the scale of unmet housing needs in tribal communities.

State agencies and public institutionsMixed Impact

State agencies and public institutions—including universities, state hospitals, and correctional facilities—will receive significant funding for building upgrades, energy system replacements, and ADA compliance. These investments improve public service delivery and safety. However, some funding (e.g., $9.3M for Capitol Campus Security) prioritizes security over programmatic expansion, which may reflect a shift toward enforcement over service delivery.

Local governments and utility districtsPositive Impact

Local governments and utility districts benefit from the $100 million Connecting Housing to Infrastructure Program, which waives or defers utility connection fees for affordable housing developers. This reduces costs for developers and ultimately lowers housing prices for low- and moderate-income households. However, the program is limited to jurisdictions that impose sales and use taxes, excluding many rural districts that may need infrastructure support most.