Governor Bob Ferguson acknowledged that Washington faces a difficult path as he prepares to propose the state’s 2026 supplemental budget. Speaking in Enumclaw on October 16, Ferguson said slower revenue growth, higher costs, and reduced federal funding could result in a shortfall of nearly $2 billion. He added that upcoming federal reductions to Medicaid and other programs will create further strain.
Republican lawmakers have challenged the governor’s framing of the issue, pointing to the 2025 state budget as the source of some of the Medicaid reductions. Senate Minority Leader John Braun and Rep. Travis Couture both argued that federal cuts have not yet taken effect and that the deficit stems from state-level spending decisions.
Ferguson emphasized that he must submit a balanced budget and said significant reductions are likely. He noted that he continues to communicate with legislative leaders from both parties, including Braun and Rep. Drew Stokesbary, about potential solutions.
The governor signed a $77.9 billion budget earlier this year that included new taxes and expanded spending. Ferguson said he will release his updated proposal in December. The 60-day 2026 legislative session begins January 12.
