February 6 Legislative Update!
As we wrap up week four of the legislative session — and pass our first cutoff — we wanted to share a concise update on fast-moving developments, along with an important call to action.
Please don’t hesitate to reach out and share information or feedback for future policy briefs to carl@watersmeet.fund.
Support nonprofit financial stability, pass House Bill 2523!
The Community Reinvestment Program fix bill has a public hearing in House Appropriations on Saturday, Feb 7, and must be voted out of committee by Monday evening.
If passed, the bill would:
- Require the CRP to be updated every five years
- Establish biennial reporting beginning in 2028
- Ensure the Office of Equity analyzes the CRP and supports advisory teams
- Distribute funds equally across key investment areas
- Require an independent evaluation
Where we are in the session and important dates
Cut-off
February 4, saw our first cut off of the session. Bills had to move out of their assigned policy committees by Wednesday or else they will likely not be considered going forward. There were hundreds of bills that did not make it past the cut off.
Next cut-off
Legislators will stay in town throughout the weekend as we’re moving quickly towards fiscal committee cut off. Senate Ways and Means is going to work late into the evening tonight so they can go home tomorrow, but House Appropriations will stay and work through the day on Saturday.
All bills must pass out of their fiscal committees by Monday evening in order to move forward.
Key Dates
Short sessions move fast — here are the deadlines to watch:
Feb 4 – Policy Committee Cutoff
Feb 9 – Fiscal Committee Cutoff
Feb 17 – House of Origin Cutoff
Feb 25 – Opposite House Policy Committee Cutoff
Mar 2 – Opposite House Fiscal Committee Cutoff
Mar 6 – Opposite House Cutoff
Mar 12 – Final Day (Sine Die)
Progressive Revenue
Millionaire’s Tax
A new proposal introduced this week creates a 9.9% tax on personal adjusted gross income over $1 million, excluding income from home sales and certain small businesses. Non‑resident professional athletes would be taxed on income tied to Washington, and some college athletes with NIL earnings may also be included.
Projected revenue: $3.5 billion per year
Funds would support:
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Working Families Tax Credit (expands eligibility to 18+)
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Elimination of retail sales tax on hygiene products
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Small business tax relief (~$230M)
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Public defense, K–12 education, higher education/workforce development
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Public health and human services
The Governor has said that while he’s supportive of the millionaire tax, he cannot support this policy in current form.
Sit and Lie Bill
On Monday afternoon, the House moved HB 2489 out of committee.
Key elements include:
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Local governments may adopt but not enforce public space restrictions.
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State criminal laws remain unchanged.
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Invalidates improper enforcement actions.
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Establishes procedures for identifying shelter.
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Updates shelter-refusal exceptions.
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Defines temporary mats/beds as “adequate shelter” (via amendment).
The vote was mostly party-line, with one Democrat voting no. The bill is now in Rules, and its path forward is uncertain.