Washington State Legislative Update
Week of Feb 16-20, 2026
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, with just until February 25 to review, debate, and advance the measures. One of the sure signs that session is drawing down is pre-budget release revenue forecast, which budget writers use to put final touches on the pending budgets. The Monday revenue forecast from the Washington State Economic and Revenue Forecast Council shows Washington’s economy and state finances performing modestly better than expected, with projected General Fund-State revenue for the current 2025-27 biennium now about $827 million higher than the November forecast, bringing total expected collections to roughly $75.3 billion and revenue for 2027–29 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 the March 12 adjournment. Democratic budget leaders have noted the forecast provides needed “breathing room,” but challenges remain.
Supplemental Budets
All three budgets (Operating, Capital and Transportation) are expected to be released on Sunday, February 22 followed by committee hearings beginning on Monday, February 23 and possible executive session occurring 2 days after the public hearing.
Monday, February 23
- 4 pm: Operating House Appropriations & Senate Ways and Means
- 4 pm: House Transportation
Tuesday, February 24
- 8 am: House Capital
- 4 pm: Capital budget Senate Ways and Means
- 4pm: Senate Transportation
Wednesday, February 25
- 1:30 pm: Possible Executive Session Senate Operating
- 4 pm: Possible Executive Session House Operating & Transportation
Thursday, February 26
- 8 am: Possible Executive Session House Capital
- 1:30 pm: Possible Executive Session Senate Capital
- 4 pm: Senate Transportation
SB 6346
On Monday, February 16, the majority Democrats sought to bolster the state’s long-term revenue outlook by approving SB 6346 (Pedersen, D-43), 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 by the majority. When the final 27-22 vote was taken, Democratic Senators Cortes (D-18), Hansen (D-23), and Krishnadasan (D-26) broke with their caucus and joined all Republican members in opposing the bill. The measure now advances to the House for further consideration.
Tension over the bill didn’t end on the Senate floor, however. On Tuesday, Governor Ferguson (D) 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 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 and reducing them for thousands more. 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.
5 O’clock Bill
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 (R-7) 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 (D-43) 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.
Legislative Casualties
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 (Callan, D-5), 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 (Cortes, D-38), 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 (D-27) acknowledged that the votes were not there to pass the measure, and the bill ultimately stalled.
At this time, the House has introduced 879 bills with 197 passing the House chamber. The Senate has introduced 748 bills with 208 passing the Senate Chamber.
Important Dates:
- February 25 – Policy Committee Cutoff – Opposite House
- March2 – Fiscal Committee Cutoff – Opposite House
- March 6 – Floor Cutoff
- March 12 – Sine Die
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Brynn Brady
Ceiba Consulting, Inc.