Washington lawmakers released their latest transportation budget proposals on February 23, leaving out Gov. Bob Ferguson’s request to borrow $1 billion for new hybrid-electric ferries. According to reporting by Washington State Standard, House and Senate budget writers affirmed long-term intentions to modernize the ferry fleet but declined to authorize the borrowing plan, delaying decisions about when new vessels could be ordered.

Ferguson had asked to borrow against future gas tax revenues to purchase three additional hybrid-electric ferries matching an earlier order placed with a Florida shipyard. These new ferries—designed for 160 vehicles and 1,500 passengers—are intended to help replace an aging fleet in which several vessels exceed 50 years of service. But legislative transportation leaders said they want progress on the initial boats already ordered before approving additional commitments.

Budget writers also opted not to fund conversions of existing diesel vessels to hybrid-electric propulsion through at least 2031, a slowdown of efforts that began under former Gov. Jay Inslee. Lawmakers did, however, signal support for exploring alternative procurement structures, including leasing ferries and expanding locally backed passenger-only service. The Legislature is also considering a proposal that would enable local governments to create new passenger-only ferry routes, which could ease congestion for communities across Puget Sound.

The broader transportation budget still includes major statewide commitments. Ferguson recently highlighted that the Legislature preserved funding for new vessel construction and continued investments in ferry workforce support, as noted in a statement published by the governor’s office through Governor Bob Ferguson. For Southwest Washington residents, these budget decisions intersect with ongoing priorities such as the I‑5 Bridge Replacement Project, which remains a funded component of the state’s long-term transportation strategy.

While Puget Sound ferry operations may feel distant from Longview and Kelso, state-level transportation funding decisions influence overall budget capacity and project scheduling. Choices about vessel procurement and system maintenance can affect how the state allocates resources across major infrastructure projects—including those critical to the I‑5 corridor through Cowlitz County.