Debate over taxes, spending will dominate WA's 2026 legislative session
Debate over taxes and spending will dominate 2026’s legislative session
The 2026 legislative session starts on Monday in Olympia where taxes, spending and cuts will be a big source of debate to balance a two-year budget.
OLYMPIA, Wash. - The 2026 legislative session starts on Monday in Olympia, where taxes, spending and cuts will be a big source of debate to balance a two-year budget.
The supplemental budget proposal under Governor Ferguson would be $79 billion from 2025 to 2027.
Ferguson’s announcement supporting a millionaires' tax stole the show during his budget rollout in late December. The governor is calling for a 9.9% income tax on people making more than one million dollars a year.
WA Gov. Ferguson backs income tax on WA residents earning over $1M
The so-called "millionaires tax" could raise $3 billion annually, starting in 2029. It would likely face legal challenges and need to go to voters for approval.
The controversial tax could possibly be drafted and get a hearing this year.
If Democrats manage to push it through, it will likely meet legal challenges since the state constitution currently bans an income tax. Ferguson has voiced support for the courts to amend the constitution.
Even if a millionaire income tax were to pass this year, the money wouldn't pour into the state's coffers until 2029. But there is some other immediate tax measures already filed for 2026, along with hundreds of other bills for the upcoming legislative session.
Tax measures
Big picture view:
Under HB 2100, Democratic representative Shaun Scott is proposing a payroll tax on large companies, forcing employers to pay a 5% tax for employees making above $125,000 a year. The revenue would go into a new account Scott calls the Well Washington Fund. Money generated would go to things like healthcare, education and human service programs.
Another tax measure is HB 2097, also filed by Rep. Scott. This would allow counties to impose their own business and occupation (B&O) tax, which already is levied at the city and state level. Last year, it’s projected that B&O tax generated more than 20% of state revenue.
Education
When it comes to education, lawmakers are looking at ways to boost student performance in reading and math.
The lead sponsor of HB 2138 is Republican Rep. Michael Keaton. The bill puts a focus on the crucial transition from 3rd to 4th grade when it comes to literacy. It would provide for the hiring of reading coaches in elementary schools. For mathematics, the bill would review state standards and specifically compare them to an effective teaching method developed in the country of Singapore.
Artificial intelligence
There's a handful of bills related to artificial intelligence, including HB 2225 from Democratic Rep. Lisa Callan. It would create some new regulations on AI chatbot companions, which are proving to be a serious concern when it comes to the mental health of minors.
The bill states it would establish safeguards to detect and respond to user expressions of self-harm, suicidal thoughts or emotional crisis. The measure is also calling for restrictions on sexually explicit content and reminders that chatbots are artificial.
Immigrant protections
Both chambers are set to consider a bill to enhance immigrant worker protections: HB 2105 from Democrat Lillian Ortiz-Self and SB 5852 from Democrat Rebecca Saldana. It will require employers to give workers notice if federal authorities do an I-9 audit. I-9 audits verify the legal status of workers and check if employers are following proper vetting procedures.
Crime and public safety
Then we have SB 5830 from Republican senator Phil Fortunato that hopes to expand Washington's definition of a hate crime to include political affiliation. It would be a Class-C Felony if someone is assaulted physically because of their political affiliation.
Some new rules of the road are also proposed for this session. SB 5890 from Republican Senator Ron Muzzall would classify reckless driving as speeds going over 30 miles per hour over the speed limit.
HB 2203 from Republican Rep. Joshua Penner would create a new driving offense called "reckless interference with emergency operations." It would make it a crime for anyone to knowingly bypass a barricade or sign to get on a closed roadway.
What's next:
Lawmakers will be sprinting to get their bills over the finish line because this legislative session is a short one, running 60 days through March 12.
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The Source: Information in this story came from the Washington State Legislature and FOX 13 Seattle reporting.