| Momentum Bucket | Strong 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 bill is a 2026 supplemental capital budget (Substitute Senate Bill 6003) that adopts new and revised capital appropriations effective through June 30, 2027, amends specified RCWs and numerous uncodified sections of 2025 c 414, adds many new uncodified sections, repeals certain uncodified sections, and declares an emergency. It primarily changes funding authorizations and program rules rather than creating new criminal offenses; the act makes targeted appropriations, reappropriations, program-specific conditions, reporting requirements, procedural changes, and property transfer conditions across many state agencies.
Major legal changes include: new and amended capital appropriations for early learning facility grants and loans (including $51 million from a named early learning development account, limits on administrative use, prioritization rules tied to district-level slot need methodology, and reimbursement rules); a required appraisal and specified process for sale/transfer of the Point Whitney state parcel to the Jamestown S'Klallam tribe (contract by June 30, 2026 or DNR completes appraisal by December 1, 2026; memorandum of understanding due January 1, 2027 and report due January 15, 2027); a $20.5 million state match for the water pollution control revolving program for FY 2027; a statewide HEAR rebate program and a behavioral health facilities grant program with detailed applicant, eligibility, licensing, prioritization, and monitoring conditions (including a 10-year holding requirement for capital improvements and a required progress report by November 1, 2026); substantial housing and preservation appropriations with set-asides for permanent supportive housing, homeownership, mobile home community preservation, urgent repair grants (per-award caps and prioritization rules), tribal-targeted application processes, and reporting deadlines; large public works board appropriations and an emergency grant pool tied to a governor-declared weather event; and a conditional $25 million “Washington builds” green bank financing appropriation that requires the nonprofit selected as the state green bank to change its name and meet board composition, audit, reporting, conflict-disclosure, and leverage requirements before funds may be spent.
The act also creates or funds several programs, pilots, and committees and changes procedures: a housing accelerator framework with consultation requirements and deadlines for preliminary and final reports (October 1, 2026 and June 30, 2027); a district energy campus upgrades committee and campus energy prioritization and reporting duties due June 30, 2027; behavioral health and weatherization program conditions, reimbursement and administrative limits for various grant programs; multiple agency-specific capital projects and reappropriations; and repeals and amendments to uncodified 2025 c 414 sections. Many specific dollar lines, amended prior figures, and lists of projects are included in the act but the extracted material is incomplete: several subsections end mid-text, many amended RCW details are not provided, and some referenced sections (for example section 3013 regarding Point Whitney, section 8018, and other cross-references) and full text of numerous amendments and repeals are not included in the available extracts.
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Why it matters
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If enacted, the bill injects a large supplemental capital budget that directs new and shifted funding to scores of targeted projects and programs, with major impacts on the Department of Commerce, OSPI, Department of Fish and Wildlife, Department of Ecology, DNR, higher education, and local governments. Practical changes include new early learning facility grants and loans (including $51 million from the Ruth LeCocq Kagi account and set-asides for minor renovations and loan funds), a $20.5 million state match for the water pollution revolving program, $35 million (plus $10 million for adult family homes) for heat pump and appliance rebates, a multi‑million dollar behavioral health facilities grant pool with $64.259 million earmarked to listed projects and a $10 million King County crisis facility, large housing trust and preservation appropriations with 24‑month start and multi‑decade affordability or hold requirements, a conditional $25 million contract to a nonprofit “Washington builds” green bank, and many local infrastructure and community project grants. Many awards must be reimbursed after nonstate shares are committed, administrative take is capped in several programs (typically 3–4%), grant contracts impose long hold periods (often 10 years), and agencies face specific prioritization rules, match requirements, and new reporting deadlines through mid‑2027.
The most affected implementers will be the Department of Commerce (which must run new grant rounds, apply prioritization and rural/overburdened‑area points, consult advisory groups, and deliver statutorily required reports), local governments and housing developers (who gain access to targeted capital but must secure nonstate matches, site control for at least ten years, meet construction start and affordability rules, or risk lapsed funds), tribes (both as prioritized partners and as potential transferees like the Jamestown S'Klallam tribe for Point Whitney), and agencies charged with project oversight (which must meet appraisal, contracting, and reporting deadlines). Several provisions and definitions are omitted or cut off in the provided text (for example full terms for the Point Whitney transfer, some department attributions, and continued subsections), so some implementation details, exact project lists, and how competing funding priorities will be resolved remain uncertain.
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| Official Documents | View Full Bill Text |
| Date Introduced | 02/26/2026 |
| 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) |