Olympia budget writers have quietly parked Gov. Bob Ferguson’s $1 billion borrowing request to buy three additional hybrid-electric ferries, leaving it off transportation drafts released Monday. That move will likely stretch the timeline for new vessels that many island and cross‑Sound commuters were counting on. Lawmakers insist they still support modernizing Washington’s aging ferry fleet, but say they want to finish the ships already on contract and shore up maintenance and near‑term reliability first. With highway preservation, tribal culvert settlements and storm‑recovery costs all crowding the ledger, big new borrowing for more boats slid down the priority list this year.
Lawmakers leave $1B plan at the dock
As reported by KUOW, both the House and Senate transportation budget drafts skipped Ferguson’s proposal to borrow against future gas‑tax receipts to accelerate purchases of additional 160‑car, 1,500‑passenger hybrid ferries. House Transportation Chair Jake Fey told reporters “it’s too soon” to order more boats before the first new ferry arrives, and Senate Transportation Chair Marko Liias said lawmakers want to explore leasing and other procurement tools instead. For now, that stance keeps the state focused on delivering the three vessels already under contract while it debates cheaper, quicker options.
Why they’re hesitating
Ferguson’s plan relied on bonding backed by future gas‑tax revenue, but budget writers cited long lead times and competing obligations when they cut the request, according to a WSDOT transportation bulletin. Washington State Ferries still expects the currently contracted boats to arrive years from now, and the initial shipyard procurement drew attention after the state awarded a $714.5 million contract last year, coverage that included local reporting on three new hybrid-electric vessels in a $714.5 million deal. Lawmakers argue it makes more sense to get those first hulls built and operating before committing to another large round of borrowing.
Short-term fixes on the table
With new ferry deliveries still many years out, private and local stopgaps are getting a closer look. The Washington State Standard reported that Seattle shipyard Stabbert Maritime has pitched buying, refurbishing and then leasing back the retired Hyak and Klahowya, while hydrogen‑ferry developer Switch Maritime has proposed leasing an 80‑car zero‑emission vessel for San Juan service. “The lease structure provides a very flexible and capital‑efficient way to procure a new vessel,” Switch Maritime’s Seamus Nolan told senators. The Senate agreed to hire a consultant to study leased hydrogen boats, and lawmakers also proposed $2 million to create a rapid‑response mechanics team aimed at reducing breakdown‑related layups.
What comes next
Budget writers from the two chambers now have several weeks to reconcile their differences before the 60‑day session ends in March, and ferry funding is expected to be part of the behind‑the‑scenes talks, according to KUOW. At the same time, Rep. Greg Nance’s Mosquito Fleet Act, which passed the House and would allow local taxing districts to subsidize passenger‑only routes, heads to the Senate as lawmakers look for faster, locally driven fixes, per the House Democrats’ press release. Leasing trials, refurbishments and expanded local passenger services are all likely to get extra scrutiny if the $1 billion borrowing proposal remains on ice.
The practical upshot is that the system still faces years of troubleshooting. The fleet’s average age is about 35 years, and Washington State Ferries currently lacks a dedicated backup vessel to cover breakdowns, heightening pressure for interim measures, according to reporting by the Washington State Standard. For now, Olympia has opted for patchwork relief and experiments instead of a single huge borrowing push, a choice that pushes the arrival of more hybrid car ferries further into the decade.
