State transportation budget negotiations set plan

The Washington state Legislature approved a $15. 5 billion transportation plan that raises the gas tax for the first time since 2016, reflecting a bipartisan effort to address infrastructure needs. Starting July 1, the gas tax will increase from $0. 494 to $0. 554 per gallon, with an annual increase of 2% beginning in 2026.

Diesel taxes will also increase by 3 cents per gallon this July and again in 2027, followed by 2% annual increases. Disagreements over funding methods, including toll-backed bonds and highway user fees, delayed the vote for a month. Ultimately, lawmakers agreed to focus on immediate funding for deferred maintenance rather than new projects, citing the need for increased revenue to improve infrastructure conditions. State Sen. Keith Goehner emphasized the necessity of raising funds for infrastructure maintenance.

The plan also includes increases to various fees related to vehicle ownership, such as car tabs and driver’s licenses. Lawmakers aim to ensure the state's infrastructure remains safe and functional despite limited funding options for future projects.