by Jake Goldstein-Street, Washington State Standard
October 7, 2026
A Washington state agency has floated cutting services for more than 2,600 residents with developmental disabilities with the goal of saving money to close a looming budget gap.
As part of its requests for the state’s next two-year spending plan, the Department of Social and Health Services suggested restricting eligibility for services could save $13.3 million, about $6 million of which would come from the state’s general fund.
The proposal would raise the bar by requiring people with developmental disabilities to show they need support with more activities of daily living to be eligible for state-paid services than they do now. These include bathing, dressing, eating and taking medication.
This suggested change would end Medicaid eligibility for an estimated 2,655 residents, according to the Department of Social and Health Services. It would mean some people receiving care in residential facilities would lose their housing since it’s contingent upon qualifying, potentially pushing them into homelessness.
Advocates decried the idea. The Arc of Washington State Executive Director Stacy Dym said “changes to eligibility like this proposal call into question Washington state’s commitment to serving our most vulnerable residents in the most integrated setting appropriate to their individual needs.”
“Individuals with intellectual and developmental disabilities rely on essential services from a network of state and federal agencies in order to live in their community free from isolation and institutional care,” Dym said in a statement. “Unfortunately, cutting community services will end up costing the state and taxpayers more.”
She believes this will push people into hospitals and other more expensive settings that will provide worse care.
Agency spokesperson Jessica Nelson described the proposal as a “first step in the budgeting process.”
“The budget options are designed to both help the agency continue to provide core services and ensure that Washington has a sustainable approach for their future funding,” Nelson said in an email. “Given the current budget climate and the ongoing increases in service costs and qualifying applicants, making changes in service eligibility is one way to sustain critical services within the available resources.”
Nelson noted the changes would “affect clients currently receiving services with the lowest support needs” to help prioritize resources on those who require more complex assistance.
This would save $13 million starting in fiscal year 2029 and increase in future years, according to agency documents. Lawmakers anticipate a multibillion-dollar budget shortfall to deal with when they return to Olympia in January.
The idea now goes to Gov. Bob Ferguson, who will release his proposed two-year spending plan in December for legislators to consider next year. Ferguson has said his proposal will lean on spending cuts to bridge the projected budget gap. The budget will run from July 1, 2027, to June 30, 2029.
Ferguson, a Democrat, included a similar idea in his budget proposal for the current fiscal year, but lawmakers decided against the cuts.
The proposal comes after the state agency considered suddenly axing a longstanding program aiding families of people with autism and other developmental disabilities. Amid an outcry over the potential cut, officials instead decided to keep the program running while trimming its funding by 10%.
The proposal also comes as the state has ferociously condemned federal cuts to Medicaid pushed by Republicans and President Donald Trump.
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