Washington State Legislative Update 

Week of April 21-27, 2025

The 2025 Washington State legislative session has been one of the most tumultuous and emotionally charged sessions in recent memory, marked by significant political tension, major fiscal challenges, and the deaths of two beloved legislators. From the opening days, the atmosphere was fraught with division. Deep ideological splits over how to address the state’s financial crisis created a highly charged environment where lawmakers frequently clashed not only along party lines but also within their own caucuses.

The most pressing issue was the staggering $16 billion budget deficit. Lower than expected tax collections, inflationary costs and increased spending resulted in fewer dollars to maintain current levels of service. The reality of the shortfall quickly consumed legislative discussions, setting the tone for the months ahead. Proposed cuts sparked widespread protests and added to the strain inside the building. In response, a range of revenue ideas were volleyed around the Capitol, from new taxes on capital gains and a wealth tax to expanded B&O and sales tax bases and proposals for bond measures.

The session was first shaken by the death of long time Secretary of State, Ralph Munro followed by the unexpected death former House Speaker Frank Chopp (D-43). A towering figure in state politics for decades, Chopp’s passing was mourned across party lines, with tributes highlighting his enduring legacy on affordable housing and social justice issues. Adding to the heavy mood, Senator Bill Ramos (D-5) also suddenly passed away while in office a mere two weeks from Sine Die. The second to last day of the session was shaken again with the startling passing of Sen. Gildon’s (R-25) wife.

The final $77.8 billion operating budget includes nearly $6 billion in cuts and close to $9 billion in new state revenue ($12 billion in total if you count the tax revenue at the local level) over the four-year outlook — significantly less revenue than legislative Democrats had initially sought. About $5.6 billion will come from increased B&O taxes (HB 2081). Governor Ferguson (D) previously rejected each version of the revenue plan, citing concerns that the proposals such as a wealth tax were “too risky.” The final budget also steers clear of furloughs for state employees, an option both Governor Ferguson and Senate Democrats had floated earlier in the session. Additional wins for state employees include new collective bargaining agreements and a 5% pay raises over two years. Another win for unions was a bill that provides 6 weeks of unemployment insurance to striking workers (SB 5041).

It remains unclear whether Governor Ferguson will support all the revenue bills or the operating budget in full or issue partial vetoes. His decision will be closely watched, as it could either cement cooperation with the legislative majority or trigger a new round of political negotiations in a special session. He released this statement which presents a general satisfaction with the legislative outcomes but does not rule out veto options.

Big Democrat Wins

• Ferguson’s campaign promises came to fruition with increased spending on education (primarily in special education-SB 5263), $100 million for more law enforcement (HB 2015), preserving the rainy-day fund, and reviewing the current state budget for savings and efficiencies.
• The House and Senate passed a bipartisan $15.5 billion transportation budget (SB 5161) ensuring major transportation projects remain on track and addressing the underfunded ferry system. The budget is supported by an additional 6 cent gas tax and a range of increased fees.
• Both Chambers unanimously passed a $7.5 billion Capital budget (SB 5195) including additional investments in affordable housing ($605 million in the Housing Trust fund), K-12 school construction, salmon recovery, and behavioral health facilities.
• After years of effort, a rent stabilization bill (HB 1217) narrowly passed. It will limit rent increases for most tenants to an annual 7% increase plus inflation or 10%, whichever is lower.
• Housing champions are hailing other housing supply wins with several bills that will expand the state’s housing supply, cut tape and lower construction costs, and increase density and middle housing options- SB 5148, HB 1491, SB 5184, HB 1403, SB 5471, HB 1096.
• Another progressive priority, gun control, had a win with a bill to require a permit to purchase a firearm (HB 1163).
• A bill that absorbed many hours of debate in both chambers was a Democrat effort to make changes to the citizen initiative on parental rights (HB 1296). The D’s sought clarifying language between students and parental rights, but the R’s saw it as an effort to weaken the initiative by removing rights that were restored in the initiative.
• The state’s recycling system will get an overhaul through a bill that will implement an Extended Producer Responsibility program that makes the packaging companies responsible for the collection and recycling of recyclable products. (SB 5284)

Please enjoy a list of all of the bills passed by the 2025 Legislature linked here. Many are still subject to Governor Ferguson’s signature. Bills that are delivered to the governor more than five days before the Legislature adjourns have five days to be acted on. Bills that are delivered fewer than five days before the Legislature adjourns have 20 days to be acted on by the governor. Both are counted as calendar days, not business days. Sundays are not counted, but Saturdays and state holidays are counted.

Brynn Brady

Ceiba Consulting, Inc.