2026 Legislative Update: Week 6

The Washington State Legislature wrapped up house of origin floor action this week, sending a wave of bills to the opposite chamber’s policy committees.

Lawmakers now face a fast-moving timeline to review, debate, and advance bills. One of the sure signs that session is drawing to an end is the release of the revenue forecast, which budget writers use to put final touches on pending budgets. 

The February 16^th revenue forecast from the Washington State Economic and Revenue Forecast Council shows Washington’s economy performing modestly better than expected. Projected General Fund-State revenue for the current 2025-27 biennium came in $827 million higher than the November forecast, bringing total expected collections to roughly $75.3 billion and revenue for 2027–29 is also up by over $1 billion compared to previous projections, largely due to stronger personal income, employment, and tax receipts. This improved outlook has given state budget writers good news as they prepare supplemental budget proposals, easing some pressure on negotiations even as lawmakers work through a complex process of reconciling competing priorities before adjournment on March 12^th. Democratic budget leaders have noted the forecast provides needed “breathing room,” but challenges remain.

On Monday, February 16^th the Senate Democrats sought to bolster the state’s long-term revenue outlook by approving SB 6346, widely known as the “Millionaire’s Tax,” following a lengthy and often contentious floor debate. Minority Republicans introduced multiple amendments aimed at modifying the scope and structure of the proposal; however, none of those amendments were adopted. When the final 27-22 vote was taken, Democratic Senators Cortes, Hansen, and Krishnadasan broke with their caucus and joined Republican members in opposing the bill. The bill now advances to the House for a public hearing on February 24^th.

Tension over the income tax bill didn’t end on the Senate floor, however. On Tuesday, Governor Ferguson held a media availability where he addressed the passage of the bill by the Senate. Ferguson proposed directing more than half of the projected revenue from the millionaire’s income tax, about $1.9 billion annually, back to Washingtonians through affordability measures. His plan includes roughly $1 billion to dramatically expand the small business B&O tax credit, effectively eliminating B&O taxes on the first $2.5 million in revenue for many small businesses. He also proposed about $380 million per year to significantly expand the Working Families Tax Credit by raising eligibility to households earning at or below the state’s needs standard, adding hundreds of thousands of families and increasing rebate amounts by 30 percent. In addition, he called for targeted sales tax relief, including a sales tax holiday for purchases under $1,000 and exemptions for diapers, baby products, and hygiene items. Ferguson has emphasized that these investments must represent new dollars directly back in people’s pockets and be tightly focused on making life more affordable. In response, legislative Democrats voiced clear frustration not only with the substance of the governor’s proposed spending plan, but also with the way it was rolled out. Rather than sparring through press conferences, they urged the governor to pick up the phone and work collaboratively with legislative leaders to reconcile differences.

One of the great questions of each floor cutoff deadline is always what will be the 5pm bill, the last bill of the day. The 5pm bill must be introduced before 4:59pm to continue. After a bill is introduced, legislators may temporarily go “at ease” to caucus, negotiate, and confer before returning to the floor for formal debate and action. These final hours before a cutoff often move quickly and require careful coordination, as leadership works to advance priority legislation before the deadline.

This year, however, the Senate encountered an unexpected delay when Senator Short requested that the full 39 pages of a bill addressing transmission reliability and capacity be read aloud. Under normal practice, the clerk reads only the first and last lines of a bill before members proceed to debate. The request for a full reading, a procedural tactic used to slow floor action and one not commonly employed by the Senate Minority, consumed valuable time and brought floor proceedings to a halt. As a result, several measures that had been scheduled for consideration were unable to be brought forward and are now considered dead for the session. In the aftermath, legislators from both parties publicly acknowledged the time constraints that define the legislative process, with many offering variations of the sentiment, “So many good bills, so little time.” During a leadership press availability, Majority Leader Senator Pedersen noted that the delay appeared to stem from a misunderstanding about the circumstances surrounding the bill. “It turned out afterwards, as we talked, that they thought something else was going on that was not going on,” he said, adding that discussions would continue and that the issues could be revisited when the Legislature reconvenes next January.

Several other high-profile proposals also failed to advance before the House of Origin cutoff across the rotunda in the House, despite significant attention and debate. Among them was Attorney General request legislation, HB 1834, which had been extensively negotiated during the previous session. The measure sought to establish baseline safeguards for minors’ use of social media by giving parents and children greater control over platform features, while also addressing concerns about the addictive design elements used by some companies. Although the bill reflected months of stakeholder work, it faced a complex legislative path this year, with three substitute versions introduced and 15 amendments considered on the House floor. Ultimately, the measure did not garner the support needed to move forward.

Another closely watched proposal, HB 2389, aimed to shift the state’s approach to juvenile justice by prioritizing community-based rehabilitation and intervention as the initial response for young offenders, reserving incarceration for more serious or persistent cases. The bill drew intense debate and more than 60 floor amendments, reflecting deep divisions over public safety, accountability, and the appropriate balance between rehabilitation and detention. During floor consideration, Speaker Jinkins acknowledged that the votes were not there to pass the measure, and the bill ultimately stalled.

The House and Senate are expected to release their operating, capital, and transportation budgets in the coming days. Current plans indicate the operating budgets will be released on Sunday, with hearings scheduled in both chambers on Monday. The capital and transportation budgets are anticipated to be introduced around the same time. The positive revenue forecast issued earlier this week has helped ease some of the previously anticipated reductions needed to balance the budget. However, a number of stakeholders are expected to express concerns once the proposals are made public.

Important Dates:

• February 25 – Policy Committee Cutoff (Opposite House)
• March 2 – Fiscal Committee Cutoff (Opposite House)
• March 6 – Floor Cutoff (Opposite House)
• March 12 – Sine Die

Bill Status & Upcoming Events Report:

Labor & Commerce (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/23 @ 10:30am

• ESHB 1155 – Public Hearing – Prohibiting noncompetition agreements and clarifying nonsolicitation agreements. (Remote Testimony Available).
• HB 2264 – Exec Session – Concerning unemployment insurance benefits for workers separated from employment as a result of employer-initiated layoffs or workforce reductions.
• 2SHB 2345 – Exec Session – Concerning contributions in the state paid family and medical leave program.

Law & Justice (Senate) – SHR 4 and Virtual JACB – 2/23 @ 10:30am

• ESHB 2095 – Public Hearing – Protecting vulnerable users of public ways. (Remote Testimony Available).

Environment & Energy (House) – HHR B and Virtual JLOB – 2/23 @ 1:30pm

• ESB 6246 – Exec Session – Concerning emissions from emissions-intensive, trade-exposed facilities under the climate commitment act.
• 2ESSB 5360 – Public Hearing – Concerning environmental crimes. (Remote Testimony Available).

Housing (House) – HHR C and Virtual JLOB – 2/23 @ 1:30pm

• ESSB 5156 – Exec Session – Concerning elevator standards in smaller apartment buildings.
• SSB 6054 – Exec Session – Concerning unreasonable restrictions on wildfire home hardening practices in common interest communities.
• E2SSB 5496 – Public Hearing – Preserving homeownership options by limiting excessive home buying by certain entities. (Remote Testimony Available).

Local Government (Senate) – SHR 3 and Virtual JACB – 2/23 @ 1:30pm

• E2SHB 2418 – Exec Session – Concerning permit review processes.
• E2SHB 2451 – Exec Session – Concerning local tax increment financing.

Appropriations (House) – HHR A and Virtual JLOB – 2/23 @ 4:00pm

• HB 2289 – Public Hearing – Making 2025-2027 fiscal biennium supplemental operating appropriations.

Transportation (House) – HHR B and Virtual JLOB – 2/23 @ 4:00pm

• HB 2306 – Public Hearing – Making supplemental transportation appropriations for the 2025-2027 fiscal biennium. (Hearing is on the Proposed Substitute.)
• HB 2711 – Public Hearing – Concerning transportation resources. (Hearing is on the Proposed Substitute.)

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/23 @ 4:00pm

• SB 5998 – Public Hearing – Making 2025-2027 fiscal biennium supplemental operating appropriations.

Finance (House) – HHR A and Virtual JLOB – 2/24 @ 8:00am

• ESSB 6346 – Public Hearing – Establishing a tax on millionaires. (Remote Testimony Available).

Law & Justice (Senate) – SHR 4 and Virtual JACB – 2/24 @ 8:00am

• ESHB 2095 – Exec Session – Protecting vulnerable users of public ways.

Civil Rights & Judiciary (House) – HHR A and Virtual JLOB – 2/24 @ 10:30am

• E2SSB 6239 – Public Hearing – Requiring arbitration for tort claims against the state of Washington and its subdivisions. (REVISED FOR ENGROSSED: Establishing a process for adjudicating tort claims against the state of Washington and its political subdivisions.) (Remote Testimony Available).

Labor & Commerce (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/24 @ 10:30am

• ESHB 1155 – Exec Session – Prohibiting noncompetition agreements and clarifying nonsolicitation agreements.

Labor & Workplace Standards (House) – HHR D and Virtual JLOB – 2/24 @ 10:30am

• 2SSB 5292 – Public Hearing – Concerning paid family and medical leave rates. (Remote Testimony Available).
• ESB 6058 – Exec Session – Adding discretion to wage enforcement actions.

Local Government (House) – HHR E and Virtual JLOB – 2/24 @ 10:30am

• SSB 5729 – Public Hearing – Encouraging construction of affordable housing by streamlining the permitting process. (Remote Testimony Available).
• ESSB 5374 – Public Hearing – Including tribal representation in certain transportation activities. (Remote Testimony Available).

Technology, Economic Development, & Veterans (House) – HHR C and Virtual JLOB – 2/24 @ 10:30am

• SSB 6289 – Public Hearing – Creating a statewide economic development and competitiveness strategic plan. (Remote Testimony Available).
• ESB 5649 – Exec Session – Creating a Washington state supply chain competitiveness infrastructure program.
• ESSB 5984 – Exec Session – Regulating artificial intelligence companion chatbots.

Consumer Protection & Business (House) – HHR B and Virtual JLOB – 2/24 @ 1:30pm

• SSB 6091 – Exec Session – Prohibiting real estate brokers from marketing residential properties to an exclusive group of prospective buyers or real estate brokers.
• ESSB 6031 – Public Hearing – Enhancing public safety and enforcement of crimes that impact insurance. (Remote Testimony Available).

State Government & Tribal Relations (House) – HHR E and Virtual JLOB – 2/24 @ 1:30pm

• SSB 6160 – Public Hearing – Improving government efficiency related to reports by state agencies. (Remote Testimony Available).
• 2SSB 5968 – Exec Session – Improving regulatory efficiency by integrating executive order 25-03, concerning permitting and licensing processes, into chapter 43.42A RCW.

Housing (House) – HHR C and Virtual JLOB – 2/24 @ 4:00pm

• ESSB 5156 – Exec Session – Concerning elevator standards in smaller apartment buildings.
• SSB 6054 – Exec Session – Concerning unreasonable restrictions on wildfire home hardening practices in common interest communities.
• E2SSB 5496 – Exec Session – Preserving homeownership options by limiting excessive home buying by certain entities.

Transportation (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/24 @ 4:00pm

• SB 6005 – Public Hearing – Making supplemental transportation appropriations for the 2025-2027 fiscal biennium. (Remote Testimony Available).
• SB 6225 – Public Hearing – Authorizing bonds for transportation funding. (Remote Testimony Available).
• SB 6354 – Public Hearing – Advancing transportation electrification by expanding access to electric vehicles already being sold in Washington and increasing associated funding. (Remote Testimony Available).

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/24 @ 4:00pm

• HB 2353 – Public Hearing – Concerning predesign thresholds. (Remote Testimony Available).
• SHB 2714 – Public Hearing – Concerning caseload forecasting for food assistance programs. (Remote Testimony Available).
• HB 1983 – Public Hearing – Amending the definition of timberland for purposes of determining the real estate excise tax for a governmental entity. (Remote Testimony Available).
• E2SHB 2251 – Public Hearing – Concerning climate commitment act accounts. (Remote Testimony Available).

Business, Trade & Economic Development (Senate) – SHR 2 and Virtual J.A. Cherberg – 2/25 @ 8:00am

• SHB 2334 – Exec Session – Adjusting the price of a cash transaction to eliminate the need for pennies.

Civil Rights & Judiciary (House) – HHR A and Virtual JLOB – 2/25 @ 8:00am

• E2SSB 6239 – Exec Session – Requiring arbitration for tort claims against the state of Washington and its subdivisions. (REVISED FOR ENGROSSED: Establishing a process for adjudicating tort claims against the state of Washington and its political subdivisions.)

Labor & Workplace Standards (House) – HHR D and Virtual JLOB – 2/25 @ 8:00am

• 2SSB 5292 – Exec Session – Concerning paid family and medical leave rates.
• ESB 6058 – Exec Session – Adding discretion to wage enforcement actions.

Local Government (House) – HHR E and Virtual JLOB – 2/25 @ 8:00am

• SSB 5729 – Exec Session – Encouraging construction of affordable housing by streamlining the permitting process.
• SB 6026 – Exec Session – Concerning residential development in commercial and mixed-use zones. (If measure is referred to committee.)
• ESSB 5374 – Exec Session – Including tribal representation in certain transportation activities.

Technology, Economic Development, & Veterans (House) – HHR C and Virtual JLOB – 2/25 @ 8:00am

• SSB 6289 – Exec Session – Creating a statewide economic development and competitiveness strategic plan.

Housing (Senate) – SHR 4 and Virtual JACB – 2/25 @ 10:30am

• 2SHB 1859 – Exec Session – Expanding opportunities for affordable housing developments on properties owned by religious organizations.
• ESHB 2266 – Exec Session – Encouraging permanent supportive housing, transitional housing, indoor emergency housing, and indoor emergency shelters.
• SHB 2354 – Exec Session – Concerning common interest communities.
• SHB 2452 – Exec Session – Modifying requirements for service of rent increase notices.

Consumer Protection & Business (House) – HHR B and Virtual JLOB – 2/25 @ 1:30pm

• ESSB 6031 – Exec Session – Enhancing public safety and enforcement of crimes that impact insurance.

State Government & Tribal Relations (House) – HHR E and Virtual JLOB – 2/25 @ 1:30pm

• 2SSB 5968 – Exec Session – Improving regulatory efficiency by integrating executive order 25-03, concerning permitting and licensing processes, into chapter 43.42A RCW.
• SSB 6160 – Exec Session – Improving government efficiency related to reports by state agencies.

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/25 @ 1:30pm

• SB 5998 – Exec Session – Making 2025-2027 fiscal biennium supplemental operating appropriations.

Appropriations (House) – HHR A and Virtual JLOB – 2/25 @ 4:00pm

• HB 2289 – Exec Session – Making 2025-2027 fiscal biennium supplemental operating appropriations.

Transportation (House) – HHR B and Virtual JLOB – 2/25 @ 4:00pm

• HB 2306 – Exec Session – Making supplemental transportation appropriations for the 2025-2027 fiscal biennium.
• HB 2711 – Exec Session – Concerning transportation resources.

Finance (House) – HHR A and Virtual JLOB – 2/26 @ 8:00am

• ESB 6347 – Public Hearing – Undoing the recent changes to the estate tax. (REVISED FOR ENGROSSED: Undoing certain changes to the estate tax.) (Remote Testimony Available).
• SB 6114 – Public Hearing – Defining the terms “fixture” and “affixed” for excise tax purposes. (Remote Testimony Available).
• E2SSB 6027 – Public Hearing – Modifying certain funding and exemptions related to providing and maintaining affordable housing and related services. (Remote Testimony Available).

Transportation (House) – HHR B and Virtual JLOB – 2/26 @ 1:30pm

• ESSB 6262 – Public Hearing – Increasing the maximum weight of certain vehicles subject to transportation benefit district vehicle fees. (Remote Testimony Available).

Transportation (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/26 @ 1:30pm

• SB 6005 – Exec Session – Making supplemental transportation appropriations for the 2025-2027 fiscal biennium.
• SB 6225 – Exec Session – Authorizing bonds for transportation funding.
• SB 6352 – Exec Session – Concerning transportation resources.

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/26 @ 1:30pm

• E2SHB 1974 – Public Hearing – Establishing land banking authorities. (Remote Testimony Available).
• SHB 2650 – Public Hearing – Concerning notifications and effective dates for department of revenue administration of certain excise taxes. (Remote Testimony Available).
• ESHB 2442 – Public Hearing – Providing local governments tax resources and fund flexibility. (Remote Testimony Available).

Finance (House) – HHR A and Virtual JLOB – 2/27 @ 8:00am

• ESSB 6346 – Exec Session – Establishing a tax on millionaires.