Governor Inslee’s 2025-27 budget proposal takes aim at the Public Works Assistance Account (PWAA) by sweeping $100 million to transfer to the state’s general fund and increasing existing diversions to other accounts.

The proposal appropriates $350 million for the PWAA in the 2025-27 biennial capital budget, while making the following diversions:

• New: $100 million sweep ($50 million/year) for transfer to state general fund.
• Existing: $114 million ($57 million/year) transfer for Move Ahead WA Account
  • Increase: $12 million in FY 2027, for a total of $69 million.
• Increase: $41 million for Water Pollution Control Revolving Account.
• Increase: $25 million for Drinking Water Assistance Account.
• Existing: $5 million for CARB revolving loans.

The $100 million diversion to the general fund is also planned for the 2027-29 biennium.

The PWAA was created in 1985 to provide grants and low- and no-interest loans to cities, counties, and public utility districts to fund basic infrastructure. Since its founding, the Public Works Board (PWB) has awarded over $3 billion to more than 2,000 local infrastructure projects in Washington. The account is a national model to fund crucial community needs and keep costs down for residents.

The PWAA was swept in the last round of state budget cuts during the Great Recession and the subsequent struggles to fund education in the wake of the McCleary decision. We finally achieved the full restoration of this critical account just last year.

Now, cities need to rally again to protect the PWAA:

• Tell your local legislators how critical this funding is for our cities.
• If the PWB has funded a project in your community, share the details with them and explain how PWAA dollars made a difference.
• For added help, refer to AWC’s 2025 infrastructure investment fact sheet or the PWB’s fact sheet for your legislative district.
• Remind your legislators that cities and towns across Washington are struggling with infrastructure needs. In the latest City Conditions Survey, 78% of responding cities reported infrastructure funding as a priority.

The proposed budget is a strong signal that the PWAA is at risk, with state revenues down and state agency budgets restricted. Governor-elect Ferguson is expected to release his budget priorities in the coming weeks. The legislative budget writers will then spend the 105-day session working on a final plan.