| Momentum Bucket | Building Momentum |
| Legal Title | AN ACT Relating to the capital budget; |
| Bill Description | Concerning the capital budget. |
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What this bill does
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This act is a 2025–27 capital budget that creates many new statutory sections and appropriates funds for capital projects and grant programs across state agencies. It authorizes appropriations (from accounts including the State Building Construction Account, Climate Commitment Account, Model Toxics Control accounts, and others) for specific named projects and for new or existing programs administered largely by the Department of Commerce, Department of Enterprise Services, Department of Ecology, Department of Natural Resources, Department of Social and Health Services, Office of the Superintendent of Public Instruction, and others. The bill establishes or funds multiple targeted grant programs and accounts, including early learning facilities, sports and youth recreation projects, library capital improvements, clean energy and solar/storage grants, housing trust fund investments, behavioral health facility grants, high-efficiency appliance rebates, Public Works Board projects, tribal climate adaptation grants, participatory community budgeting, and many agency-specific capital repairs and modernizations.
Legally, the act creates new law sections that authorize and condition capital spending rather than creating new criminal offenses. It sets program rules and procedures: project eligibility, competitive solicitation and review committee structures, nonstate match and reimbursement requirements, site-control and minimum holding periods for capital improvements (often ten years), limits on administrative uses of appropriations (specified percentage caps), prioritization criteria (for example, vulnerable and overburdened communities, tribal set‑asides, small towns), and reporting duties to the governor and legislative committees with specific deadlines. The act also directs agencies to develop technical methodologies and consult other agencies for program implementation (for example, DCYF must develop an early childhood slot‑need methodology tied to the caseload forecast and include it in budget submittals).
The bill includes procedural enforcement measures: grants may be awarded or disqualified for conflicts of interest, contracts may require repayment of principal plus interest if grantees do not comply with use or holding provisions, and some awards require confirmation that operating funding will be available before capital is released. Behavioral health provisions are framed as capital grants to expand or preserve service capacity, include eligibility and prioritization rules, require consultation with health agencies and advisory representatives, and impose operating and minimum-term commitments for funded facilities; references to involuntary commitment and federal IMD funding limits appear as implementation constraints and coordination requirements. Many appropriations are expressly made subject to other sections of the act and to cited RCWs.
Important context is missing from the extracted text. Numerous cross-referenced sections (for example, section 8018 and other internal sections) and detailed amendments or repeals named in the bill header are not included here, several section texts end mid-sentence, and some project lists or funding details are incomplete in these extracts. Where the bill excerpt references other provisions or pending conditions, those provisions are not available in the provided material.
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Why it matters
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If enacted, the bill moves large capital investments to a wide range of state and local projects for the 2025–27 biennium: early learning facility grants and loans, housing trust fund construction and preservation, behavioral health facility expansion and crisis stabilization, clean energy and electrification grants (including EV charging and solar/storage), school modernization and indoor air quality projects, parks and conservation projects, water and environmental cleanup, and many named local infrastructure projects. The Department of Commerce is the primary administrator for many of these new programs and will carry new reporting, solicitation, and oversight duties, OSPI will run several school safety, health, and HVAC grant programs, and DCYF must develop a district‑level methodology to identify early learning slot needs. Many awardees — school districts, tribes, local governments, ports, nonprofits, housing developers, and health facilities — will gain access to state capital funding but must meet readiness tests: nonstate matching funds generally must be expended or firmly committed before state funds are used, projects often require site control and a 10‑year hold on capital improvements, many grants are reimbursement‑based, administrative uses are capped (commonly 3–4%), and contracts include monitoring and repayment with interest if grantees fall out of compliance.
These rules make state dollars more available but impose upfront financing, timing, and compliance costs for recipients (cashflow pressure from reimbursement rules, requirements to secure matching funds, and risks of repayment if covenants aren’t met). Agencies taking on program administration face added workload for competitive solicitations, technical assistance, and multiple reporting deadlines (for example, project lists and status reports due Oct. 1, 2026; pilot reports due June 1, 2027; progress reports Nov. 1, 2026; and plan submissions Sept. 1, 2026), and many appropriations are noted as being “subject to section 8018 of this act,” whose content is not included here, leaving key implementation details and timing uncertain.
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| Official Documents | View Full Bill Text |
| Date Introduced | 04/03/2025 |
| Originating Chamber | Senate |
| Biennium | 2025-26 |
| Total Campaign Dollars Backing Bill | $2,186,630.25 |
| BUDGETS |
| Hearing | Senate Ways & Means (Public) |
| Hearing | Senate Ways & Means (Public) |
| Hearing | Senate Ways & Means (Executive) |