Rep. Mike Steele praises $7.63 billion bipartisan capital budget as "Bright Spot" for Washington

OLYMPIA — Washington state lawmakers have released a $7.63 billion bipartisan capital budget proposal for 2025-27 that focuses on statewide infrastructure needs and community investments.

House Bill 1216, unveiled this week, represents months of collaborative work between Republican and Democratic legislators. The proposal makes substantial investments in housing, education, behavioral health facilities, and essential infrastructure across the state.

Rep. Mike Steele, R-Chelan, ranking Republican on the House Capital Budget Committee, expressed strong support for the plan.

"This budget is the product of months of careful collaboration and a strong focus on people," said Steele. "At a time when other state budgets are facing pressure and shortfalls, the capital budget stands out as a bright spot. It supports our shared bipartisan priorities—housing, education, behavioral health, and essential infrastructure—and does not rely heavily on general fund dollars. I'm proud of the teamwork that went into this plan and confident in the positive impact it will have in communities across the state."

Unlike Washington's operating budget, which covers day-to-day state services and relies primarily on general fund revenue, the capital budget is largely funded through bond sales. It focuses on long-term physical investments including public schools, water systems, and community facilities.

The House proposal includes $4.64 billion in newly authorized general obligation bonds while strategically reserving $389 million in bond capacity for the 2026 supplemental capital budget.

Key investments in the proposal include $723.6 million for housing and homelessness initiatives, with $100 million allocated for permanent supportive housing and $80 million for first-time, low-income homebuyer assistance.

K-12 education would receive $1.1 billion, including $563 million for the School Construction Assistance Program and $249.5 million for Small District and Tribal Compact School Modernization.

The proposal earmarks $1.4 billion for higher education, with $458 million specifically for Community and Technical Colleges.

Behavioral health facilities would receive $471.7 million, including $282 million to complete Western State Hospital and $132.7 million for behavioral health capacity grants.

Natural resources programs would see significant funding at $2.19 billion, with investments in wildlife recreation, flood management, water supply programs, and salmon recovery efforts.

The proposal also includes climate-related investments, with $50 million for tribal climate adaptation grants and $28 million for public school classroom indoor air quality projects, funded through the Climate Commitment Act.

House Bill 1216 now awaits a vote in the House. The 2025 legislative session is scheduled to adjourn on April 27.