The first increase in Washington’s gas tax since 2016 is the centerpiece of a bipartisan transportation funding plan state senators unveiled Monday. The 6-cent per-gallon hike in fiscal year 2026 would bring the gas tax to 55.4 cents — before including the 18.
4 cent federal rate. The state tax would then rise by 2% annually to account for inflation starting the following year under the Senate plan. The proposal would raise $1.
5 billion over the next six years, lawmakers say. It’s one of several ways legislators on both sides of the aisle are looking at funding a $16.2 billion budget in the 2025-2027 biennium.
Without new revenue, the transportation budget faces a $1 billion shortfall over the next two years, growing to $8 billion to meet current obligations over the next six years, some lawmakers have cautioned. If state senators get all the new revenue they envision, their estimates show it would total about $10.2 billion in new funding for transportation during the next six years.
A proposed transfer of 0.3% of sales tax collections from the operating budget to transportation would add $800 million annually starting in the 2027-2029 biennium. Other moneymakers include raising fees on electric vehicle registrations, a new tax on luxury vehicles costing over $100,000, an increase in the tax on rental cars and an added $10 assessment on traffic infractions.
Even with the new revenue options, the budget plan still includes 13 furlough days in fiscal year 2026 for state tr.
