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Ferguson Signs Budget Boosting Washington State Spending and Taxes

  • Governor Bob Ferguson signed Washington state's nearly $78 billion two-year budget into law on May 20, 2025, including major tax increases.
  • The budget addresses a $7.5 billion to $16 billion shortfall and imposes nearly $10 billion in tax hikes over four years despite earlier veto speculation.
  • Key tax measures include $5.7 billion in business tax increases, a 6-cent gas tax hike, capital gains taxes, repeal of certain breaks, and funding for state employee pay raises.
  • An AWB survey shows 12% of businesses plan to relocate, citing taxes as the primary cause, while critics warn the budget worsens affordability and burdens families and employers.
  • Though Ferguson underscores investments in core services, the budget signals ongoing tax increases in Washington with potential future adjustments amid business concerns.
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Komo News broke the news in Seattle, United States on Tuesday, May 20, 2025.
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