issue area reports | transportation, housing and land use
Transportation, Housing and Land Use
Morgan Irwin: Transportation, Land Use and Telecom
As predicted, the transportation budget was a hot topic in the 2025 legislative session. Lawmakers began the session facing a deficit of $ 1 billion in the budget due to inflation and skyrocketing costs, putting much-needed projects in peril. After debating several options for new and increased revenue, lawmakers ultimately passed a $ 15.5 billion bipartisan transportation budget.
Key to balancing the budget is a 6-cent increase in the gas tax, which raises the state’ s per-gallon tax from 49.4 cents to 55.4 cents. The gas tax will also increase by 2 % each year to account for inflation. The state tax on diesel will increase an additional 3 cents to 58.4 cents and increase another 3 cents two years later. Additional fee hikes include higher tire replacement fees, increased vehicle weight fees, and $ 3 bumps in the fees for titles and registrations, among others. These fees are in addition to general tax increases.
While the budget includes funding for highways, ferries and pavement preservation— an AWB priority— the new fees create an extremely difficult economic environment for employers of all sizes, especially those who rely on transportation to distribute their goods and services. They also make it more expensive for employees as they commute to and from work.
AWB Vice President of Government Affairs Morgan Irwin also covered transportation and infrastructure issues during the 2025 session.
HB 1958 i-5 bridge tolls
Passed / AWB Supported sponsor: Rep. Jake Fey, D-Tacoma
This bill establishes a tolling program to help pay for the construction of a replacement bridge on I-5 across the Columbia River. It authorizes the sale of $ 2.5 billion in general obligation bonds, with money repaid with toll proceeds, gas taxes and vehicle fees. The House passed the bill 61-35 and the Senate 35-13.
SB 5281 vessel length requirements
Passed / AWB Supported sponsor: Sen. Mike Chapman, D-Port Angeles
This bill increases the maximum allowed length of certain nonresident vessels eligible for a nonresident vessel permit from 200 to 300 feet. This will help support shipbuilders and manufacturers. The legislation passed easily through both chambers.
Bill considered as part of AWB’ s voting record
Favorable outcome for Washington businesses
Missed Opportunities
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