The 2025 Washington State Legislative Session adjourned Sine Die on April 27 after 105 days of deliberation, marked by significant policy shifts and fiscal challenges due to the majorities spending habits. Under the leadership of newly inaugurated Governor Bob Ferguson, the Democratic- supermajority controlled legislature addressed a projected $12 billion budget shortfall through a combination of the largest tax increases in state history, spending cuts, and progressive policy reforms.​ The 2025–27 operating budget appropriates $77.872 billion, an increase of $5.927 billion (8.2%) over enacted 2023–25 appropriations.

Gov. Ferguson's administration prioritized fiscal restraint, proposing $4.4 billion in across-the-board spending cuts early in session. These reductions targeted administrative expenses, travel, and non-essential programs. However, legislative leaders, including House Majority Leader Joe Fitzgibbon and Senate Ways & Means Chair June Robinson, expressed concerns that cuts alone would not suffice to maintain essential services. Consequently, the final budget incorporated increased revenue through tax increases to bridge the gap. In the end, budget writers removed the furloughs suggested by Ferguson and giving in to the pressure from state worker unions.

To address the budget deficit, lawmakers approved many types of tax increases:

Excluding transfers to and from the transportation budget, the revenue package would generate $9.379 billion, with key legislation including:

• HB 2081 – B&O tax increases

• SB 5814 – Excise tax expansion

• SB 5813 – Capital gains and estate tax increases

• SB 5794 – Tax preference repeals

• HB 2077 – Zero-emission vehicle program

 

The revenue legislation includes a comprehensive package that is expected to generate a total of $8.72 billion over the 2025–27 and 2027–29 biennia. In 2025–27, the revenue package is projected to raise approximately $4.29 billion, followed by $4.43 billion in 2027–29. Key components include $2.07 billion and $3.56 billion from changes to the Business & Occupation (B&O) tax across the two periods, respectively, and significant revenue from excise taxes, which are expected to contribute $1.15 billion and $1.53 billion. Additional elements include tax preference reforms, accelerated repayments of sales tax deferrals, and adjustments related to capital gains and estate tax rates. SB 5802 outlines several fund transfers, including $453.9 million from transportation accounts to the general fund in 2025–27, offset by future transfers from the general fund to transportation accounts and the Multimodal Account in 2027–29. These measures reflect a substantial reshuffling of funds and tax policy changes aimed at supporting both transportation and general government operations.

Proposals for a wealth tax and lifting the property tax cap were not enacted, reflecting ongoing debates within the legislature.​

Transportation Budget

This year’s transportation budget includes a $3.2 billion revenue package spread over six years, featuring a 6-cent-per-gallon fuel tax increase on both gasoline and diesel. While the new revenue will help fund upcoming infrastructure projects, the wide range of new fees will significantly affect both individuals and businesses.

The most substantial impacts will likely come from the fuel tax increase, which includes a 2% annual inflation adjustment starting in July 2026, and higher truck weight fees.

Environmental Crimes
 
SB 5360- Concerning environmental crimes. Establishes new crimes and provides penalties, and reclassifies existing crimes, for certain violations of the state Water Pollution Control Act, Clean Air Act, Hazardous Waste Management Act, and other specified provisions (environmental laws). Provides first-degree and second-degree felony violations for certain offenses under specified environmental acts in the state sentencing grid as seriousness level V and III offenses, respectively. Repeals certain provisions relating to existing criminal penalties in environmental laws. The bill did not get executive action out of committee because House leadership had concerns about the bill. DEAD
 
CCA Farm Fuel Exemption

HB 1912- Establishes a process by which certain entities may voluntarily notify the Department of Ecology (Ecology) of locations where agricultural fuels exempt from a compliance obligation under the Climate Commitment Act (exempt fuels) are available for purchase. Requires Ecology to publish, by October 1, 2025, certain information on its website to assist individuals seeking to purchase exempt fuels or obtain a remittance from the Department of Licensing. Extends the exemption for certain fuels used to transport agricultural products on public highways by two years. Farm Bureau is completely responsible for asking for the propane special fuels clarification that was once obscure and is now clearly identified and terminated by CCA regulators in 2030, because Farm Bureau asked for it. We will work over the next few years to get propane permanently exempted from CCA fees. On April 16 the Senate passed the bill with yeas, 49; nays, 0; absent, 0; excused, 0.

Unemployment Insurance Benefits for Striking Workers
 
SB 5041- Concerning unemployment insurance benefits for striking or lockout workers.
Allows individuals unemployed due to a labor strike to receive up to 12 weeks of unemployment insurance (UI) benefits following a specified disqualification period, from January 1, 2026, through December 31, 2035. Removes the disqualification from UI benefits based on an employer-initiated lockout resulting from a strike against another employer in a multi-employer bargaining unit, from January 1, 2026, through December 31, 2035. On April 12 the House passed the bill with yeas, 52; nays, 43; absent, 0; excused, 3.
 
Safety of Working Minors
 
HB 1644- Concerning the safety and health of working minors. Establishes minimum penalties for violations of restrictions governing the employment of minors. Requires the Department of Labor and Industries (L&I) to conduct a safety and health consultation at a worksite before granting a student learner variance allowing a minor to perform work typically prohibited based on the minor's age. Requires L&I to revoke an employer's minor work permit for certain violations of the Washington Industrial Safety and Health Act or laws pertaining to the employment of minors. Expands responsible bidder criteria to include bidders not subject to a revocation of a minor work permit. On April 9 the bill passed the Senate with yeas, 37; nays, 12; absent, 0; excused, 0.
 
Collective Bargaining for Cannabis Workers
 
HB 1141- Concerning collective bargaining for agricultural cannabis workers. Establishes collective bargaining procedures for certain cannabis agricultural workers. Places cannabis agricultural worker collective bargaining under the jurisdiction of the Public Employment Relations Commission. On April 14 the Senate passed the bill with yeas, 29; nays, 20; absent, 0; excused, 0.
 
WSDA Dairy Inspection Program Extension to 2031

HB 1553- Extending the dairy inspection program until June 30, 2031. Sponsored by freshman legislator Rep. Adison Richards (D-Gig Harbor). The bill does not change the current fee structure and the expiration date for the assessment on milk processed in the state is extended from June 30, 2025, to June 30, 2031. April 11 the bill was signed by Gov. Ferguson.

Extended Producer Responsibility

SB 5284- Improving Washington's solid waste management outcomes. The bill does exempt all bottles and packaging for products regulated by FIFRA. That is a positive outcome on this bill. In addition, the bill applies to residential recycling and packaging, it does not apply to commercial waste situations. Many parts of agricultural industry will be considered commercial waste operations.

EFFECT OF HOUSE AMENDMENT(S): Allows for an alternative means to identify socially vulnerable populations if the US CDC tool is no longer available. Modifies the due date for the one-time PRO fee and clarifies what the first PRO fee must cover. Requires PROs to provide producers with information regarding state and federal laws that restrict toxic substances rather than prohibiting toxic substances. Prohibits state and local elected officials, Ecology solid waste or policy division employees, and formerly elected officials who served within the last three years from serving on the board of the PRO or as employees of the PRO. Establishes an equity subcommittee of the advisory council to provide information, make recommendations, and review PRO plans regarding impacts to socially vulnerable populations and overburdened communities. Clarifies that the PRO must adopt multiple statewide collection lists, rather than a single list. Specifies that a PRO may propose multiple alternative collection programs for covered materials. Requires Ecology to notify the appropriate committees of the Legislature when a draft PRO plan has been submitted and posted to Ecology's website. Provides that Ecology's approval of the first PRO plan submitted by October 1, 2028, does not take effect until after the adjournment of the 2029 regular legislative session, in order to allow an opportunity for the 2029 Legislature to determine whether to amend PRO related requirements, make other recycling policy changes including the establishment of a bottle deposit return program, or allow for the draft PRO plan to be implemented in full. Specifies that Ecology may only approve a draft PRO plan that meets all plan requirements, and prohibits Ecology from approving a plan that does not satisfy all plan criteria, including but not limited to reducing or eliminating disparities in the availability to socially vulnerable populations of covered services for covered materials. Modifies PRO education and outreach requirements and requires that education and outreach activities be culturally responsive, conceptually, linguistically, and culturally tailored, and use materials and methods that rely on evidence-based practices. Modifies the needs assessment to include additional requirements regarding materials collected at drop-off sites, assessment of current residential service collection contracts, and measurement of postconsumer recycled content that could be incorporated in certain plastics. Requires Ecology to contract for a one-time forecast analysis of the draft PRO plan to be submitted by January 2029 and for that analysis to be informed by stakeholders, and to consider whether a bottle deposit return program could be established as a component to the PRO plan. Requires the independent review to analyze the effects of the program on reuse rates. Exempts noncompostable film plastic used for raw meat from covered materials and authorizes a PRO or producer to request an exclusion for raw meat packaging. Requires Ecology to contract with an independent consultant to carry out two studies on a beverage container deposit return system. One study must examine possible models for redemption sites and another study regarding the potential program design for a bottle deposit return program.

Low Carbon Fuel Standard

HB 1409- Concerning the clean fuels program. Sponsored by House Majority Leader Joe Fitzgibbon. Amends the carbon intensity reduction requirements for transportation fuels under the Clean Fuels Program (CFP). Establishes penalties and other enforcement powers specific to the CFP program requirements and eliminates Clean Air Act criminal and civil penalties for violations of the CFP. Removes incentives for farmers to grow feedstock. Removes incentives for building new biofuels plant in state. The bill guides Ecology to analyze feedstocks grown in state when creating the CFP. Specifies that, for the purposes of Ecology adjusting the CI standard to require a 55 percent reduction by 2038, Ecology must determine: (1) At least one one that is part of the ZEV Program was not being enforced as of 2030, rather than the overall ZEV Program not being implemented as of 2030, or (2) GHG emissions associated with transportation fuels, reported in 2030, have not been proportionately reduced relative to 2030 statewide emissions limits, rather than transportation emissions from motor vehicles achieving a 45 percent reduction consistent with the statewide emissions limits. Provides that, to avoid issuing a forecast deferral, Ecology may adjust the CI standard to be up to 2 percent less than the percentage reduction for a particular year, rather than precisely 2 percent below the CI standard. Encourages Ecology to adopt rules that are harmonized with rule updates in other states with similar programs and with which Washington transacts significant quantities of transportation fuels. On April 15 the Senate passed the bill with yeas, 25; nays, 23; absent, 0; excused, 1.
 
Extending the pesticide application safety committee
 
HB 1294-Extending the pesticide application safety committee. The committee's expiration date is extended from July 1, 2025, to July 1, 2035. The restriction on the advisory group conducting in-person meetings is removed. The bill contains a null and void clause requiring specific funding be provided in an omnibus appropriation act. On April 11 the Senate passed the bill with yeas, 49; nays, 0; absent, 0; excused, 0.

PFAS Testing of Biosolids

HB 5033- Ecology must convene an advisory committee with representatives from the farming community, toxicologists, utilities that produce soil amendments, local governments, experts, interested parties, and other similar stakeholders. Requires the Department of Ecology (Ecology) to establish perfluoroalkyl and polyfluoroalkyl (PFAS) chemicals sampling or testing requirements for certain biosolids by July 1, 2028. Requires Ecology to complete an analysis of the levels of PFAS chemicals in certain biosolids by July 1, 2029. Directs Ecology to report a summary of the analysis and make recommendations to the Legislature by December 1, 2029. Establishes an advisory committee of representative stakeholders with which Ecology must consult before adopting or amending rules related to sampling or testing biosolids for PFAS chemicals.. On April 10 the bill passed the House with yeas, 95; nays, 0; absent, 0; excused, 3.

Reporting Cattle Methane Emissions

HB 1630- Requires the reporting of methane emissions from Dairy Cows and Feedlot Cattle. Beginning January 1st of the year following the year in which the department adopts rules to implement this section, each owner or operator of a dairy farm or feed lot in the state must submit an annual report to the department with the total metric tons of methane emitted from the dairy farm or feed lot in the preceding calendar year. For the first report due under subsection of this section, the owner or operator may estimate the total annual emissions by multiplying the average total monthly emissions over a consecutive three-month period within the calendar year covered by the report. The department must adopt rules to implement this section, including a reporting schedule that provides reasonable lead time for the first report. DEAD

Housing and Rent Cap

In response to escalating housing costs, the legislature passed a rent stabilization bill capping annual rent increases at 7% plus inflation or 10%, whichever is lower. This measure includes protections for renters in single-family homes and a 5% cap for manufactured housing. The bill passed, 54-44, and awaits Gov. Ferguson's signature.

Additionally, legislation requiring 10% of new housing units near transit hubs to be affordable for lower-income residents was approved, aiming to increase housing supply and accessibility.

The 2025 legislative session was characterized by a pragmatic approach to fiscal challenges, with a focus on balancing budgetary constraints with progressive policy initiatives. Governor Ferguson's administration and the legislature navigated complex issues such as housing affordability, labor rights, and public safety, setting the stage for ongoing policy debates and reforms in the coming years. Republicans are already sounding the alarm that Democrats are planning additional tax increases in 2026.