MYNORTHWEST POLITICS

Green vs. green: Will Washington sacrifice climate funds to fix budget?

Mar 13, 2025, 4:28 PM | Updated: 4:37 pm

washington recession...

The Olympia Capitol Building. (Photo: Julia Dallas, MyNorthwest)

(Photo: Julia Dallas, MyNorthwest)

With Washington facing a staggering $15 billion budget deficit, a fierce debate is brewing over whether money from the state’s Climate Commitment Act (CCA) should be redirected to help fill the budget gap. The funds, currently earmarked for climate-related projects, are being considered for use on public services like special education and the Working Families Tax Credit.

Democratic leaders, who control both chambers of the Legislature, are strongly resisting the move, arguing it would undermine voter-approved environmental investments.

Passed in 2021, the CCA established a cap-and-invest program requiring large polluters to purchase carbon allowances, generating billions of dollars for environmental projects. The funds have gone toward electric vehicle charging stations, free public transit for youth, wildfire prevention and clean energy investments.

While the law was challenged in a 2024 ballot initiative, voters decisively upheld it. During a media Q&A session on Thursday, Democratic leaders in both the House and Senate said that defeat showed strong public support for keeping the revenue dedicated to climate-related spending.

House Majority Leader Joe Fitzgibbon (D-Seattle) argued that shifting CCA money away from climate investments would break faith with voters.

“The Republican proposal sweeps all that dedicated investment into the general fund,” Fitzgibbon said. “That’s not keeping our promise to voters.”

More from MyNorthwest: No more waiting – Schools must notify parents immediately under reworked House bill

The deficit dilemma

But with a record-setting budget deficit looming, some lawmakers are questioning whether the state can afford to limit these funds to environmental projects when critical services are also under financial strain.

Fitzgibbon acknowledged it is legally possible to use CCA funds for the Working Families Tax Credit, but he warned that doing so would strip funding from clean air, clean water and forest health programs.

“That’s not what voters wanted,” he added.

Constitutionally, funding public schools is the Legislature’s primary responsibility. A $2 billion plan to upgrade and fund special education is on the table, relying on the general fund and potentially money from the recent capital gains tax on large stock sales. However, with the general fund expected to be stretched thin to cover the deficit, some lawmakers are eyeing CCA funds as an alternative.

Senate Majority Leader Jamie Pedersen (D-Seattle) was asked whether he would prefer to spend $150 million on electric vehicle charging stations or special education. Pedersen rejected the premise of the question.

“I don’t think we need to pick between the two,” he said. “Voters supported the idea that carbon fees should go toward reducing emissions and increasing climate resilience.”

He emphasized that the CCA funds were approved with the explicit understanding that they would be dedicated to fighting climate change, not plugging budget holes.

More from MyNorthwest: US, Canada, EU tariff war impacts red swing states and Washington alcohol

A high-stakes budget battle ahead

Despite opposition from Democratic leaders, the pressure to tap into CCA funds may not go away. Republican lawmakers argue that, given the state’s severe financial strain, the money should be used to prevent cuts to essential services. They contend that while climate investments are important, funding education and working-class tax relief should take priority when the state faces such a massive deficit.

With budget negotiations heating up in Olympia, the fight over how to use CCA funds is shaping up to be one of the most contentious debates of the legislative session. While Democrats appear committed to protecting the money for climate-related uses, the question remains: Can they hold the line, or will the sheer size of the deficit force a compromise?

Matt Markovich is the KIRO Newsradio political analyst. Follow him on X.

MyNorthwest Politics

tukwila public camping ban homeless...

Luke Duecy

Tukwila City Council approves homeless camping ban on city property, penalties include up to 90 days in jail

The Tukwila City Council has voted to make camping on city property a misdemeanor, approving a controversial ordinance supporters said will help police address homeless encampments.

20 hours ago

kalshi gambling laws washington...

Katrina Guischard

Judge rules Kalshi likely violated Washington gambling laws

A King County Superior Court judge has ruled that online prediction market operator Kalshi likely violated Washington state gambling laws and consumer protection statutes.

22 hours ago

2 Federal way mayor...

John Curley Show

‘Robberies have dropped 71%’: Federal Way mayor talks policing wins, data centers, but dodges governor question

Crime in Federal Way has significantly declined, with car thefts down 80%, robberies down 71%, and burglaries down 60%.

2 days ago

washington budget democratic governors...

Charlie Harger

Harger: Washington’s budget went from $33 billion to $80 billion. Two former Democratic governors claim Olympia has lost the thread

Between Gary Locke and Christine Gregoire, they've balanced more budgets than anyone currently working in Olympia, and they know what one looks like when it's heading somewhere bad.

2 days ago

Hannah Sabio-Howell...

Jake Skorheim and Spike O'Neill Show

‘The status quo hasn’t been working’: Democratic Socialist Sabio-Howell on her bid to unseat Jamie Pedersen

Hannah Sabio-Howell aims to unseat Jamie Pedersen, arguing the status quo harms Washington residents.

4 days ago

ICE jayapal...

James Lynch

‘A regime of brutality’: ICE enforcement draws fire from Jayapal, local leaders after fatal shootings in Texas and Maine

U.S. Representative Pramila Jayapal denounced what she called a “regime of brutality” as ICE enforcement ramps up in the Puget Sound area.

5 days ago

Green vs. green: Will Washington sacrifice climate funds to fix budget?