Washington voters will head to the polls in November to decide on a crucial constitutional amendment that aims to allow the Long-Term Services and Supports (LTSS) Trust Fund, more commonly known as the WA Cares Fund, to invest in stocks and equities.
Established in 2019, the WA Cares Fund provides a lifetime benefit of $36,500 to qualified beneficiaries. This groundbreaking healthcare program is financed through a mandatory payroll tax of 58 cents for every $100 earned by employees. The fund is designed to offer long-term health services benefits, including home health care, adult day care, nursing home care, and group home care, to those who qualify.
Notably, the WA Cares Fund is the first state-operated long-term care insurance program in the nation. As of 2025, the program has limited options for exemptions from the payroll tax.
To be eligible for benefits, individuals must meet several criteria: they must be 18 years or older, unable to perform at least three daily tasks such as eating, bathing, or administering medications on their own, and have paid the payroll tax for a total of either 10 years without a break exceeding five consecutive years or three years within the last six years. Additionally, candidates must have worked at least 500 hours during the years they contributed to the tax.
An initiative set for the 2024 ballot that would have allowed employees and self-employed individuals to opt out of the program was recently rejected, with 55% of voters opposing the measure and 45% supporting it.
An assessment of the WA Cares Fund conducted by the Washington Office of the State Actuary indicated that the current premium rate of 0.58% may not suffice to ensure the program’s long-term solvency over a 75-year horizon.
Currently, the state constitution requires that funds be invested only in fixed-income securities such as government and corporate bonds or certificates of deposit. Exceptions exist for certain funds, including public pension and retirement funds and those that benefit individuals with developmental disabilities.
The Washington State Investment Board, which oversees the management of these investments, reported an impressive rate of return of 8.5% for the fiscal year ending in June 2024.
Under the current state constitution, amendments need a two-thirds (66.67%) vote in each chamber of the Washington State Legislature to pass. This proposed amendment was introduced into the Washington State Senate by Senate Majority Leader Jamie Pedersen, Senate Minority Leader John Braun, and Senate President Pro Tempore Steve Conway.
On March 10, the Senate passed the amendment with a vote tally of 42 to 7, garnering support from 17 Republicans and 25 Democrats, while two Republicans and five Democrats opposed it. Following this, the House approved the amendment on April 11, with a vote of 58 to 28. Among House Republicans, 28 voted in favor, while 9 opposed the amendment. All 58 Democrats supported it.
Interestingly, a similar amendment was on the ballot in 2020 but was rejected by 54% of voters, with only 45% in favor. However, this newer amendment has gained support in three of Washington’s 39 counties: Jefferson, King, and Whatcom.
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