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Dear Friends and Neighbors,
There are just three weeks left in the 2025 legislative session, but several major hurdles still need to be cleared before the final gavel is scheduled to drop on April 27. Our primary task is to pass the state’s three budgets.
In this update, I will provide more information on the state’s operating and transportation budgets, both of which necessitated no votes.
The transportation budget
The 2025-27 transportation budget outlines a $15 billion plan that addresses a $1 billion shortfall and rising infrastructure costs. It relies on $4.4 billion in new revenue, $1.3 billion from the Climate Commitment Act (CCA), and $2 billion in savings from project delays. This budget also assumes gas tax increases, additional tire fees and a mileage tax on EVs. It includes $1 billion for fish barrier replacements, $1.9 billion for ferries, $11.4 billion for WSDOT projects, and significant funding for transit, bike/pedestrian infrastructure, and electrification – spending priorities that doesn’t benefit Eastern Washington proportionately.
I offered an amendment that would have provided $50 million in state matching funds for the US-12 Walla Walla Corridor improvement project, leveraging $108 million federal dollars secured by Senators Murray and Cantwell. The funds were intended to support the final four-lane segment between Wallula and Nine Mile Hill, a critical safety corridor. The amendment also signaled the Legislature’s intent to provide an additional $25 million in the 2027-29 biennium. Despite the project’s significance to the district, the amendment was rejected. You can watch my floor speech on this amendment by clicking here or on the photo below.
The transportation budget also relies on new tax increases, as outlined in House Bill 2043. Key provisions include:
- 9-cent gas tax increase.
- 15-cent diesel tax increase.
- Introduction of a highway user fee for fuel-efficient vehicles based on the Virginia model.
- Raises vehicle registration, weight, and title fees.
- Imposes a $4 per tire fee.
The bill comes amid concern over budget shortfalls, underperforming revenue from past transportation packages, and rising project costs. I would argue these new taxes are regressive, disproportionately impact rural communities and working families, and fail to address existing infrastructure backlogs or inefficiencies in project spending.
For these reasons, I voted no on this budget.
The operating budget: A budget built on higher taxes and more spending
Recently, the House passed an operating budget that leans on more than $15 billion in new and increased taxes — many of which directly impact everyday Washingtonians. This isn’t just about taxing big corporations. House Democrats voted to raise costs on marriage licenses, fishing and hunting permits, and Discovery Passes — placing a burden on working families and seniors simply trying to enjoy the outdoors.
During the debate, House Republicans offered responsible, common-sense amendments to cut wasteful spending, avoid unnecessary tax hikes, and fully fund core priorities like special education. Unfortunately, those solutions were rejected along party lines.
This budget leaves $3.5 billion unspent, highlighting the fact that tax increases aren’t needed – they are desired by those advocating for “progressive revenue.”
Washington families are already feeling the squeeze:
- Housing costs are 43% higher than the national average.
- We pay the third-highest gas prices in the country, thanks to a state-imposed 49.4-cent gas tax.
- The cost of living — from groceries to utilities — keeps climbing.
Instead of offering relief, the majority party is proposing the largest tax increase in state history — between $15 and $20 billion.
Here are four of the largest proposals with the greatest impact:
- House Bill 2045 – Imposes a new Business and Occupation (B&O) tax surcharge on large businesses and financial institutions, negatively impacting approximately 400 businesses statewide.
- House Bill 2046 – Creates a new tax on unrealized capital gains for individuals with assets over $50 million, including stocks, bonds, mutual funds, and index funds.
- House Bill 2049 – Raises property taxes by increasing the annual growth cap from 1% up to 3%, based on inflation and population growth.
- Senate Bill 5796 – Establishes a new payroll tax for employers with annual payrolls exceeding $7 million.
For a full list of the tax proposals currently on the table, click here.
If you’re wondering how we got here, click here or on the photo below.
I will continue fighting for a budget that reflects Eastern Washington priorities, respects taxpayers, and makes Washington more affordable for families and small businesses alike.
Thank you for allowing me to represent you in Olympia.
Sincerely,
Skyler Rude
