Washington Governor Bob Ferguson has unveiled a targeted $244 million proposal to expand affordable housing and address a persistent shortage that he described as a statewide crisis.

Speaking at a news conference in Seattle, Ferguson said the investment is intended to strengthen housing supply, reduce cost pressures on renters and lay the groundwork for regulatory reforms to spur construction across urban and rural communities.

The proposal designates $225 million in state bonds for the Housing Trust Fund, which is expected to support the construction or preservation of more than four thousand housing units across the state.

Ferguson highlighted that many Washington residents spend a disproportionate share of their income on housing, with the near-majority of renters considered “rent-burdened” according to federal guidelines.

In tandem with the funding measures, state legislators have backed proposals from lawmakers such as Senator Emily Alvarado to expand residential and mixed-use development in areas currently zoned solely for commercial purposes.

Alvarado noted that allowing housing in underused commercial zones is essential to unlocking new development opportunities and facilitating housing growth in established urban growth areas.

The governor’s announcement comes as part of a broader package of budget priorities expected to be released in the coming days, reflecting sustained focus on affordability, housing supply and economic opportunity.

Ferguson also signed an executive order to establish a new state Department of Housing, elevating housing production and planning to cabinet-level priority and underscoring his administration’s commitment to long-term solutions.

Lieutenant Governor Denny Heck endorsed the plan, stating that expanding the housing supply is “fairly obvious” as the core solution to the state’s affordability challenges, even as implementation remains complex.