Politics
Washington childcare subsidies hinge on November vote over high-income tax
Gov. Bob Ferguson says repealing Washington’s new tax on income above $1 million could put hundreds of millions of dollars for early learning and childcare at risk. The measure is expected to fund subsidies as families face high costs and providers struggle to maintain care slots.
SEATTLE — Gov. Bob Ferguson urged Washington voters Tuesday to reject Initiative 645, warning that repeal of the state’s new tax on household income above $1 million could jeopardize funding for childcare and early learning programs.
The 9.9% tax is scheduled to apply to earnings beginning in 2028. State projections say it could generate more than $3 billion annually starting in 2029, with 5% set aside for early learning and childcare. That share could total about $321.5 million during the 2029-31 budget period, including more than $160 million in its first year, according to state estimates.
Ferguson made his case at the José Martí Child Development Center in Seattle’s Roosevelt neighborhood, joined by parents, childcare advocates and providers. He said the funding would not resolve the state’s childcare shortage, but could help make more slots available. Losing access to care, he said, would affect thousands of children and families.
One program at stake is Working Connections Child Care, which helps pay for care for eligible working parents and parents in school. The subsidy currently serves households earning less than 60% of the state median income — about $70,000 for a family of three. More than 44,000 families were enrolled last year, while the program has faced uncertainty amid state budget pressures.
The cost of care remains high beyond households eligible for subsidies. Jasmin Calderon Shadlow, childcare director at the center, said toddler care there costs $2,300 a month. The average annual cost of care for a Washington child under 5 is about $18,700, according to a 2025 Child Care Aware estimate.
Access is limited even for families who qualify for help. A 2026 report from the First Five Years Fund estimated that more than 102,000 Washington children eligible for federal childcare assistance are not served by the program that helps support the state subsidy.
The tax revenue could also help shore up planned expansions to Working Connections eligibility. The state had scheduled increases to 75% of median income in 2029 and 85% in 2031, but delayed them this year amid budget cuts. Genevieve Stokes, government relations director at Child Care Aware of Washington, said the projected funding would be significant support for a system already strained by cuts, though it would not close the estimated $6.3 billion annual economic opportunity gap associated with inadequate affordable childcare.
Washington’s general election is Nov. 3. Ballots must be postmarked that day or returned to a drop box or county elections office by 8 p.m.