Washington state’s legal costs reached a record nearly $614 million during the fiscal year that ended June 30, 2026, according to new figures from the state’s risk management office. The total includes more than $537 million in lawsuit settlements and tort claim payments, along with approximately $76 million in legal defense costs.
The increase continues a multi-year trend driven largely by claims involving alleged abuse and neglect within Washington’s foster care system. Claims involving the Department of Children, Youth and Families accounted for nearly 80 percent of the state’s settlement costs during the past fiscal year. The agency received more than 1,100 claims in 2025, compared with just 13 in 2020.
Because Washington is self-insured, settlement payments and legal expenses are funded with state resources that could otherwise support public services such as education, health care, and child welfare programs.
State leaders continue to examine potential solutions. A proposal that would have required many lawsuits against the state to go through arbitration before reaching court did not advance during the 2026 legislative session. Instead, a 14-member Tort Study Committee representing state agencies, local governments, attorneys, school districts, and victim advocates is expected to provide recommendations later this year.
The increase in claims follows court rulings that significantly expanded the time frame for filing childhood sexual abuse lawsuits, allowing cases involving decades-old allegations to proceed. At the same time, state officials have pointed to recent high-profile settlements involving current child welfare cases as evidence that the issue extends beyond historical claims.
Local governments are also reporting rising liability costs and are urging lawmakers to consider reforms to address growing financial pressures.
