Introduction:
This is our first Legislative Brief for the 2026 Session. In these briefs — which will be briefer in the future — we update community partners on legislation impacting our communities and share calls to action to make our voices heard in Olympia. To sign up to receive these messages directly in your inbox fill out our sign-up form.
Budget Outlook
Washington State’s budget outlook is challenging. The state will face a $4.3B+ shortfall over the next four years, the budgeting timeline for the state. The budget is still positive in fiscal year (FY) 2026, however, in FYs 2027-2029, the budget turns sharply negative. In the 2025 session to solve the budget shortfall, there were programs were delayed until 2027-2029. Legislators will again face difficult decisions and whether additional delays or even cancelations are necessary.
The recent storm and flood damage across Western Washington and the mountain passes will only further strain the budgets. It is too early to assess the cost, but it will be substantial. The only silver of good news here is that Trump administration quickly approved a federal disaster declaration that will allow for federal funding to offset a significant portion of the state’s response and repair expenses.
Governor’s Budget
The Governor is required to release his proposed 2026 supplemental budget by December 23rd of this year. The Governor’s office has indicated they are waiting until they have the most up-to-date revenue information before releasing the budget, likely close to that December 23rd deadline.
Governor Ferguson said in a press conference that they are working on an “all-cuts” budget, saying “I don’t plan on balancing the budget with revenue.” Ferguson shared that this year’s budget will be more challenging to write than last year’s. Ferguson did make clear that he will veto any property or sales tax increases. Additional revenue options could be on the table but are highly unlikely to originate from the Governor’s Office.
Potential New Revenue
The Big Picture:
Expect new revenue proposals that focus on payroll taxes for large corporations, but don’t expect support from Governor Ferguson, moderate Democrats, or Republicans.
Our analysis:
Conversation on new taxes are ongoing. So far, one revenue proposal was introduced:
- HB 2100 – Representative Shaun Scott, a Democratic from Seattle, and member of the Democratic Socialists of America, introduced legislation in response to H.R.1’s impact to the State of Washington. The legislation is similar to Seattle’s JumpStart payroll tax. The bill would generate an estimated $2.2B by imposing a 5% tax on payroll expenses above a $125,000 salary threshold. Companies with more than 50 workers, payroll in excess of $7 million and gross receipts of more than $5 million would pay the tax, roughly 4,300 companies statewide.
While this is the first revenue proposal, it is unlikely to move forward with the current legislative dynamics. There are certainty going to be additional revenue proposals introduced prior to the start of session or in the first week. Sen. Frame (D-Seattle), Vice-Chair of Way & Means for Finance and Rep. Berg (D-Mill Creek) Chair of the House Finance Committee are two to watch closely. Each has discussed additional revenue at length and will be central to any serious package moving forward in the legislature, due to issue area expertise and committee positions.
With the Governor’s clear position on sales and property tax increases, expect additional revenue proposals to be centered around income tax options, fee increases, or taxes on large businesses. Republicans and progressive Democrats, especially, will try to get Governor Ferguson on the record in opposition to or support of specific revenue options as we near session.
Washington State Taxes in Context:
Washington has the second most regressive state tax structure in the country: Our state taxes increase inequality by costing low-income people a higher percentage of their income than millionaires and billionaires. The state constitution prohibits direct income taxes, which makes changing this inequitable dynamic very challenging. Over the past 90 years, there have been several attemps to implement an income tax, all have been ultimately unsuccessful.
Committee Days
The Big Picture:
The Legislature held their “committee days” between December 3rd-5th. Legislative committees met, holding hearings on budget outlooks and areas of concern before their committee. State agencies appeared before their relevant committees giving policy and fiscal reports for projects and funding accounts. Nearly all of the state’s Standing Committees and a few of its Joint Committees met last week. We have high level highlights on community safety, housing, human services and early learning, tribal relations, civil rights and surveillance, law and justice, immigration, and the Community Reinvestment Project.
House Committees:
- Community Safety – The committee reviewed statewide and national crime data showing a notable drop in both violent and property crimes, though domestic-violence and juvenile-offense trends remain stubbornly high. Members walked through differences in clearance rates across jurisdictions, which highlighted ongoing investigative and staffing challenges. Law-enforcement agencies also outlined the hiring and retention pressures they continue to face. While no policy proposals were discussed, the data will likely frame public-safety debates heading into session.
- Housing – The committee took a closer look at tools that make better use of existing housing stock, including adaptive reuse, preservation strategies, and shared-equity ownership models. Several examples illustrated how community land trusts and land banking can keep units affordable long term. Members also heard about financing and permitting barriers that make it harder for cities to scale these approaches.
- Human Services, Youth & Early Learning – DSHS walked through its internal reorganization and how shifting program responsibilities may affect service delivery during the transition. Residential rehabilitation centers described ongoing workforce shortages and aging facilities that limit available capacity. Child-welfare staff gave updates on caseload pressures, placement challenges, and uneven access to community-based supports, particularly outside major metro areas. The committee spent much of its time on concerns about system capacity and consistency across regions.
- State Government & Tribal Relations – The committee received updates on the Office of Equity and reviewed issues affecting voting access in Native American communities. There are major barriers to political participation and state-tribal coordination, including practical obstacles such as distance to drop boxes, address conventions on reservations, and limited language or outreach resources that reduce voting access.
- Civil Rights & Judiciary – Members received updates on guardianship reforms and efforts to provide more consistent guidance to courts handling vulnerable-adult cases. Staff walked through the remaining workload tied to State v. Blake, including resentencing, vacating orders, and financial-obligation refunds. There was also discussion of new pathways into the legal profession intended to widen access to representation across the state.
Senate Committees –
- Law & Justice – The Attorney General’s Office outlined early patterns in hate-crime hotline calls, noting frequent reports of harassment toward immigrant, LGBTQ+, and religious-minority communities and emphasizing widespread confusion about what legally qualifies as a hate crime. The Office of Independent Investigations reported progress in hiring and training but highlighted major challenges in building a statewide response system, particularly in Eastern Washington where travel distances and staffing gaps complicate timely investigations. Courts and public-defense officials described a heavy Blake-related workload and persistent defender-staffing shortages, warning that these pressures continue to slow resentencing work and strain the quality and consistency of representation across the state.
- Housing – Members examined mixed-use development models that combine residential units with commercial or community space, emphasizing how zoning and infrastructure requirements shape feasibility. Presenters explained that these projects can expand housing supply in areas already served by transit, but often encounter delays due to permitting timelines and local design standards. The committee also considered funding and infrastructure needs that support redevelopment of underutilized commercial corridors. Overall, the conversation centered on how land-use tools can accelerate production in built environments.
- Human Services – HCA officials described how recent federal policy changes affect eligibility for people with intellectual and developmental disabilities, noting that some individuals may lose or shift coverage as redeterminations continue. SNAP administrators reported increased administrative demands tied to federal rule changes and highlighted ongoing food-security concerns. Juvenile-rehabilitation leaders briefed the committee on facility staffing shortages, behavioral-health-related needs of youth, and pressure on secure beds.
Interesting Policy Conversations and Legislation
- Community Reinvestment Program (CRP) – The Legislative Black Caucus is leading efforts to rework CRP. Details of what this will look like are still being discussed, and it’s unclear if this will come in the form of legislation or proviso, but it’s something that will be watched closely.
- Flock Cameras – A late October study by the University of Washington uncovered that Flock cameras, widely used for license plate reading and tracking by local law enforcement, were being accessed by federal immigration authorities. Despite local and state laws against such information sharing for immigration issues, federal agents had accessed these cameras and their data dozens of times.This issue has exploded with municipalities turning off their cameras or reviewing their use. A recent investigative series from RANGE Media highlights the Spokane County Sheriff Office’s lax oversight of this system and how it is being accessed by federal and out of state law enforcement agencies.There will be legislation this session that is highly likely to pass, in some form, to address these issues and general public record concerns from municipalities due to a recent court decision that allows the public to requests flock camera data.
- Immigration – Funding for the WAMASS program will expire this year and must be renewed. It is unclear if this funding will be in the Governor’s budget so it’s likely legislative advocacy will be needed in order to keep this funding in place for 2026. In that same vein, there is roughly $9 million for legal assistance dollars for immigrant and refugees that will be available in 2026, if there are rumors of that account being eliminated, we will watch for that and activate accordingly. We would be surprised to see this but something to watch. We will also see several pieces of legislation relating to what ICE agents can and cannot do in Washington. We’ll also see other protection bills for immigrant workers, healthcare expansion, and more.
- Keeping Families Together Act – There is pressure on supporters of the landmark Keeping Families Together Act to prove that the legislation is not putting children at undo risk, according to critiques. A lot of this pressure comes from the increase in critical incidents involving infants and exposure to drugs. Unfortunately, there are folks tying those incidences to legislation. DCYF and others are working to put forward a modest fix that will address concerns while attempting to keep the original intent of the legislation. We’ll also see some packages put forward that address support for children and parents and respond to the increase in critical incidents.
Pre-Filed Bills
From conversations, it appears bills are slower in being dropped this year compared to past years. The Governor’s Budget will also spur a flurry of introductions in response in mid- to late- December. The entire list of pre-filed bills can be found here.
Read the bills in the full document:
2105/5852 – This Attorney General request legislation proposes to strengthen protections for immigrant workers in Washington by requiring employers to notify employees when federal authorities request employment eligibility information (such as I-9 paperwork) and clearly limiting what information employers must share with federal immigration officials. It reinforces that employers must follow existing law and only release personal data when presented with a valid subpoena or warrant, and it gives workers the opportunity to prepare and respond if federal audits or enforcement actions are occurring. The Senate version is very likely to advance depending on chamber dynamics.
HB 2102 – Updates Washington’s legal financial obligation (LFO) system by eliminating several court-imposed costs, fees, and interest types that are no longer allowed and declaring any outstanding amounts on those items as fully satisfied. It creates a clearer pathway for people to have uncollectible LFOs—both restitution and non-restitution—waived based on their ability to pay. The bill also allows courts to set up an administrative process to waive certain outstanding debts without requiring a formal motion.
HB 2105 – This bill adds a layer of procedural protections for immigrant employees during federal I9 inspections—mandating communication, providing legal aid referrals, ensuring confidentiality, and prohibiting employer retaliation—all effective immediately upon enactment.
SB 5872 – The bill creates a dedicated account—managed within the state budget—intended to fund and support universal preschool initiatives (PreK) for Washington’s children. This was put forward at the request of Governor Ferguson.