Whats next with investing WAs long-term care fund in stocks

Washington voters approved a significant change to the WA Cares long-term care program, allowing payroll taxes to be invested in the stock market. Nearly 58% of voters supported the constitutional amendment, which aims to boost returns and maintain the program's financial health. The WA Cares fund currently has a balance of $2. 9 billion. However, the implementation of this investment strategy will take time, as the state investment board will first engage a consultant to evaluate asset allocation.

The board expects to receive recommendations by next fall. Supporters argue that investing in equities can help avoid excessive payroll tax increases, while critics caution against the risks associated with market volatility. The program, which began collecting taxes in mid-2023, will offer eligible individuals a benefit of $36,500 starting in July 2026. A pilot program is set to launch in January in select counties.