Washington officials are weighing tighter eligibility rules for state-supported developmental-disability services that could remove an estimated 2,655 residents from Medicaid coverage and jeopardize housing for some people who receive care in residential facilities. The Department of Social and Health Services included the change among its requests for the state’s next two-year budget. The proposal would require applicants to need help with more daily activities — including bathing, dressing, eating and taking medication — than is required under current rules. The department estimates the change could save $13.3 million beginning in fiscal year 2029, with about $6 million coming from the state’s general fund. Savings are expected to grow in later years. The budget period would run from July 1, 2027, through June 30, 2029. The proposal is not final. It is an option submitted for consideration as Gov. Bob Ferguson prepares a budget plan, which he is expected to release in December. Lawmakers will take up the plan next year after returning to Olympia in January, with the state facing a projected multibillion-dollar budget gap. Department spokesperson Jessica Nelson described the eligibility change as an initial budget step, saying officials are trying to maintain core services amid rising costs and an increasing number of eligible applicants. She said the proposal would affect clients with the lowest support needs so resources can be prioritized for people requiring more complex assistance. Advocates warned that losing eligibility could have consequences beyond the loss of services. Some residents in residential settings could lose their housing because eligibility for those placements depends on qualifying for services. Stacy Dym, executive director of The Arc of Washington State, said the proposal raises concerns about the state’s commitment to supporting people with intellectual and developmental disabilities in community settings. In a statement, she said community services help people avoid isolation and institutional care, and argued that cuts could push people into hospitals or other settings that cost more and provide poorer care. Ferguson, a Democrat, proposed a similar eligibility change in his budget plan for the current fiscal year, but lawmakers rejected the cuts. The new proposal follows another recent budget dispute over services for families of people with autism and other developmental disabilities: after public opposition to ending a long-standing program, the state kept it in place while reducing its funding by 10%. The eligibility proposal also comes amid state criticism of federal Medicaid cuts advanced by President Donald Trump and congressional Republicans. Ferguson has said his next budget will rely on spending cuts to address Washington’s projected shortfall.