Governor Bob Ferguson has unveiled a new budget proposal aimed at addressing a $2.3 billion shortfall, calling for $800 million in reductions across state agencies and higher education. Alongside these cuts, Ferguson is proposing a historic $244 million investment in affordable housing, which he claims constitutes the largest allocation for housing in a supplemental budget. This plan includes the establishment of a new Department of Housing, aimed at rapidly developing affordable rental units, protecting existing housing from flooding, and supporting first-time homebuyers. The proposed budget has faced criticism from GOP leaders, who describe it as costly and ineffective, while business leaders have expressed concern about the associated fiscal implications. As part of this budget strategy, the governor also plans to utilize funds from the state’s reserve and climate money to help fill the budget gap, emphasizing a focus on both transportation and housing in his fiscal approach.