Washington State legislators completed the 2026 legislative session on Thursday evening. The Legislature adjourned its regular session, Sine Die on March 12, at 8:25pm. Over the course of the 60 days, legislators focused on a 9.9% income tax above $1 million and expansion of the Working Families Tax Credit to support the lower-income households in the state. The week was filled with drama right down to Thursday afternoon when the fire alarms went off and interrupted floor votes in the Capitol building. Legislators rushed for the exits and fire trucks surrounded the building. 

The income tax bill was the real drama. SB 6346 was brought to the House floor for debate starting on Monday at 5:30pm. After about 80 floor amendments, 6 were adopted, the final vote was called for on Tuesday at 6:30pm. There were no extended breaks during the 25-hour debate and House Republicans spoke for 3 minutes each, on all the amendments and final passage. The bill passing was a foregone conclusion and when the dust settled 8 Democrats voted with the Republicans. Final tally was 51 to 46 with 1 excused.

The new income tax would impact an estimated 30,000 taxpayers and generate $3.5 billion annually for state programs. Gov. Bob Ferguson has pledged to sign the bill, marking the state’s first income tax since 1933. Tax collections would start in 2028. There will be legal challenges and ballot initiatives to try and repeal the new tax.

Following passage of the income tax, Legislators approved a partial rollback of last year’s increase in the state’s estate tax rate, currently the highest in the nation, the Senate voted 39 to 10 on Thursday to concur with the House on the bill that would soften the increase enacted in the 2025 session. Last year, Legislators raised the top estate tax rate to 35%, well above the roughly 20% rate in Hawaii, with the highest rate applying to estates valued above $12 million after a $3 million exemption. The estate tax has generated about $535 million annually over the past five years, according to the Washington State Department of Revenue, and budget writers projected the higher rates could push collections above $600 million per year. The changes and lowering the rate back down will likely keep that revenue about the same.

The $80.2 billion supplemental operating budget adds more spending to the $77.8 billion 2025–27 biennium budget. Budget writers made some light reductions in state spending with cuts of $143 million to childcare programs, $27 million to the Transition to Kindergarten program, and $22 million in administrative cuts, while major increases in the budget included $956 million in liability payouts and $71 million for Medicaid.  Legislators also moved $4 billion from police and firefighter pensions to replenish state reserves and tapped $880 million from the Rainy-Day Fund.

Before adjourning, Washington legislators approved the $889 million capital budget and a $16.6 billion transportation budget. The transportation budget moves additional funding up to the current years for the PCC short line railroad. This change will protect the money from being swept into mega transportation projects that will likely become underfunded in future years.

Other priorities this session included funding education and behavioral health, improving housing affordability, public safety, transportation, climate and clean-energy initiatives, and updating drug possession and treatment laws following the Blake v. Washington ruling. As the session closed, legislators finalized budget adjustments and remaining priority bills before sending them to Ferguson for signature. There were 1,675 bills introduced this session and 267 bills passed the Legislature.

The Governor has 5 days, when the Legislature is in session, or 20 days (Sundays don’t count), since the Legislature has adjourned, to act on any bill passed by the Legislature. If the Governor does not sign a bill that has passed, the bill is automatically implemented. The Governor can veto parts of bills but that rarely happens.

High Priority Bill Updates

SB 6346- Establishing a tax on millionaires. Imposes a 9.90% tax on individuals on the receipt of income exceeding $1 million beginning in calendar year 2028. Passed the Legislature, headed to the Governor for signature.

SB 6244- Extending an existing hazardous substance tax exemption until January 1, 2038, for certain agricultural crop protection products that are temporarily warehoused but not otherwise used, manufactured, packaged, or sold in the state of Washington. The bill was on the House floor calendar waiting for a vote for 9 days. Constant, daily encouragement is what got the bill a vote. The bill was briefed in the House Democrat caucus on Wednesday evening. Thursday morning leadership called me and said the bill would get a vote. Then the fire alarms went off and delayed all work in the House and Senate. The bill was moved to third reading and final passage at 6:15pm. It was one of the last bills voted on before the House finished voting and went into Sine Die procedure. The final vote was 79 to 18. The bill now goes to the Governor for signature.

HB 2279- directs the Washington State Department of Agriculture to evaluate the use of per- and polyfluoroalkyl substances (PFAS) in agricultural fertilizers and pesticides. DEAD

HB 2409- Placing agricultural employees under the jurisdiction of the public employment relations commission for the purpose of collective bargaining. DEAD

SB 6045- Extends collective bargaining rights to agricultural employees in Washington by placing them under the jurisdiction of the Public Employment Relations Commission (PERC). DEAD

HB 2471- Concerning collective bargaining for employees not covered by the national labor relations act. Passed the Legislature, headed to the Governor for signature.

SB 6045- Extends collective bargaining rights to agricultural employees in Washington by placing them under the jurisdiction of the Public Employment Relations Commission (PERC). DEAD

SB 6117- Concerning collective bargaining for employees not covered by the national labor relations act. DEAD

HB 2516- Placing a moratorium on the use of certain rodenticides. This bill would ban the use of all rat and mouse treatments. DEAD

HB 1607- Bottle Recycling Program. DEAD

HB 1630- Recording and regulating methane emissions from cattle. DEAD

HB 2271- Concerning postconsumer recycled content requirements for plastic products. Establishes new minimum postconsumer recycled content (PCRC) requirements applicable to specified types of plastic products and plastic packaging. Amends existing PCRC requirements applicable to plastic trash bags, plastic household and personal care product containers, and plastic beverage containers. DEAD

SB 5360- concerning environmental crimes. The bill would apply to violations of the state Clean Water Act, Clean Air Act, and Hazardous Waste Materials Act, elevating certain offenses from misdemeanors to felonies and converting some civil infractions into criminal violations. The proposal mirrors federal law at the state level but does not include comparable individual liability protections. It also revises the statutory definitions of “knowingly” and “negligent” and grants prosecutorial authority to the Attorney General’s Office. DEAD

SB 5852- Concerning immigrant worker protections. DEAD