The 2026 legislative session of the Washington State Legislature began Monday, kicking off the 60-day short session that will run through mid-March. Lawmakers from both chambers return to Olympia following an active pre session period, with dozens of bills already pre filed on issues ranging from health care and education to housing and affordability.
The session opens amid significant fiscal pressure. Democratic and Republican leaders are framing their priorities against a projected $2.3B budget deficit, renewed debates over taxes and affordability, and the need to adopt a supplemental budget to address revenue shortfalls.
Read more about Life Science Washington’s 2026 state legislative priorities here.
On December 23, Governor Ferguson released the first budget proposal of his administration, following last year’s transition from Governor Inslee. The Governor’s supplemental budget does not rely on new taxes to close the deficit. Instead, it relies on a combination of roughly $800M in targeted spending reductions and administrative efficiencies, approximately $425M in reallocated funds from existing state accounts, and about $1B drawn from the state’s Budget Stabilization Account.
While Governor Ferguson has signaled interest in a future tax on high income earners, it is not included in the current supplemental budget and would not address the current budget deficit, even if enacted this year. As discussions continue, Life Science Washington will work to educate lawmakers on how new or increased taxes would impact the state’s investment climate for early-stage life science companies.
Additionally, Governor Ferguson has proposed shifting the 340B pharmacy benefit from managed care to fee for service.
Legislative fiscal committees will begin hearings on the Governor’s supplemental budget early next week. Both chambers will then develop their own budget proposals, with negotiations expected to continue throughout the session as lawmakers work toward a final balanced budget before adjournment.
Life Science Washington Issues
The Senate Health and Long-Term Care Committee is scheduled to hear SB 5981 on Friday at 8:00 AM. The bill would codify practices that allow hospitals to use the federal 340B Drug Pricing Program as a revenue-generating tool, disregarding long-standing concerns about lack of transparency and accountability in the program. Under 340B, drug discounts intended to increase access to care and provide lower costs for patients are increasingly driving hospital revenue, undermining the program’s original purpose and driving a significant financial drain on the state’s Medicaid budget. The bill would also further strain life science companies by reducing resources available for future research and development of new therapies. Life Science Washington will testify in opposition.