Washington State Considers $3 Billion Bond for Transportation Improvements

Washington Governor Bob Ferguson is pushing for a $3 billion bond to address critical maintenance needs and bolster the state’s transportation infrastructure, including highways, bridges and ferries. The proposal, unveiled in December 2025, aims to expedite transportation spending without raising taxes, leveraging existing revenue streams approved by the legislature.

Addressing Decades of Neglect

The proposal comes as Washington state faces a significant backlog in transportation maintenance. Nearly 350 bridges within the state highway network are over 80 years old and require replacement. Approximately 40% of the state’s lane miles, roughly 7,900 miles, were due or overdue for paving in 2024, with only 670 miles actually repaved.¹

Funding Breakdown

The $3 billion bond would be allocated as follows:

• $1.1 billion for maintenance and preservation operate on state bridges.
• Over $900 million to improve hundreds of miles of state highways.
• $1 billion to purchase three new ferries for the Washington State Ferries fleet.

Leveraging Existing Revenue

Governor Ferguson’s plan doesn’t rely on new taxes. Instead, it utilizes funding sources already approved by the legislature, including a 6-cent increase in the state gas tax, higher rental car fees, a luxury vehicle sales tax, and a 3% charge for credit card transactions on ferries.² These revenue sources were initially intended to address cost increases and maintain progress on existing highway expansion projects.

Legislative Debate and Diverging Approaches

The Senate transportation committee has largely supported the bond proposal, with committee chair Marko Liias emphasizing priorities of preservation, maintenance, and job creation.¹ Yet, the House transportation committee has expressed reservations about taking on additional debt, proposing to utilize existing bonding capacity and spread funding over multiple biennia.²

Ferry Funding Adjustments

The Senate proposal deviated from Governor Ferguson’s initial plan by removing a $1 billion bond allocation for accelerating the construction of three new vehicle ferries. Liias explained this decision was made to focus on the delivery of the three ferries already on order.¹

Debt Service Concerns

Debt service already accounts for nearly 12% of the state’s transportation budget, exceeding the combined operating and capital budgets for the Washington State Ferries system. The new bond proposal will increase this percentage, potentially straining future transportation budgets.¹

Looking Ahead

The Senate and House transportation committees are expected to approve their respective budgets by the end of the week, leading to a conference committee to reconcile the differences. A final proposal must be approved before the legislative session adjourns on March 12th. The debate highlights the ongoing tension between addressing immediate maintenance needs and continuing to invest in expansion projects.