Washington Approves $78B Budget With $9B in Taxes

Washington Governor Bob Ferguson has signed a $78 billion two-year state budget that increases spending by over 8% and introduces $9 billion in new taxes, including expanded business and occupation taxes, surcharges for large corporations, higher capital gains taxes, and increased fees for services and licenses. The budget aims to address a significant budget shortfall and funds a variety of public services and collective bargaining agreements. Ferguson also approved a law making Washington the third state to allow striking workers to collect unemployment benefits after a waiting period, a move applauded by labor advocates but criticized by Republicans. The budget's tax increases have sparked concern among families and businesses over affordability. In addition, Washington faces potential impacts from proposed federal Medicaid cuts that could affect nearly 2 million residents. These measures underscore the state's efforts to tackle fiscal challenges, worker protections, and healthcare access amid political debate.