The 2026 legislative session concluded Thursday evening at 8:24 PM, bringing to a close one of the most contentious sessions in recent years. What began in January as a debate over how to address a projected $2.3B budget shortfall quickly evolved into a broader fight over taxes and spending, culminating in the passage of the Millionaire’s Tax and several other major fiscal proposals.
The debate over that tax in particular has already begun to ripple beyond Olympia. Primary challengers are emerging in multiple districts to criticize majority Democrats for either supporting the measure or not supporting it strongly enough, exposing long-standing divisions within the Democratic caucus and setting the stage for what is expected to be a highly charged election season.
With the Legislature now adjourned, attention turns to the governor’s desk. Governor Ferguson has 20 days from adjournment, excluding Sundays, to act on legislation delivered to him.
Millionaire’s Income Tax Passes, Ferguson Expected to Sign
After more than 24 consecutive hours of floor debate, the House approved the Millionaire’s Tax, SB 6346, on Tuesday evening in one of the longest and most contentious floor sessions in recent memory. Republicans, joined by several moderate Democrats, offered more than 80 amendments in an effort to slow the bill and force debate on its key provisions. The debate stretched overnight as lawmakers argued over the scope of the tax, its potential impact on high-income residents, and how the revenue would be used in future state budgets. Despite the extended debate, Democratic leadership ultimately secured the votes needed for passage. Representatives Bronoske (D-28), Morgan (D-29), Reeves (D-30), Richards (D-26), Rule (D-42), Shavers (D-10), Timmons (D-42), and Walen (D-48) joined Republicans in opposing the measure. The Senate approved the bill Wednesday evening, and Governor Ferguson has indicated he will sign it into law.
Legislature Approves Funding for CBIT at UW Bothell
We are thrilled to report that the final operating budget approved by the Legislature includes $250,000 to support the Center for Biotechnology Innovation and Training (CBIT) at the University of Washington Bothell. CBIT was developed in partnership with life science employers to create an applied biotechnology pipeline aligned with high-demand industry needs. The program combines industry-informed curriculum, paid internships, and direct employer engagement to prepare students for lab and biomanufacturing roles. This investment will help strengthen Washington’s life science workforce pipeline and support the continued growth of our state’s innovation economy.
Budget Directs WEIA Oversight Board to Engage High-Tech Industry
The final budget also includes language directing the Workforce Education Investment Account (WEIA) Oversight Board to partner with Washington’s high-technology industry associations as part of its 2026 report to the Legislature. The report will examine how the state can better support investment in high-demand degree and advanced certificate programs, which were a core priority when the Workforce Education Investment Act was originally enacted. Strengthening alignment between industry workforce needs and WEIA investments will help ensure the program continues to support the sectors driving Washington’s innovation economy.
CARE Fund Cut, Caught Up in Unrelated Policy Disagreements
SB 6129, the tobacco, nicotine, and vapor tax legislation, ultimately died in the House Finance Committee due to disagreements about anti-smoking and vaping efforts. The bill also included a $10M allocation to the Andy Hill Cancer Research Endowment (CARE) Fund intended to supplement the funding provided in the state operating budget. While the final budget appropriates $10M for the program, SB 6129 was designed to provide an additional $10M to maintain the CARE Fund’s current level of support for cancer research grants. As a result, the failure of SB 6129 effectively leaves the program $10M short for the biennium, reducing the total funding available for new research investments.
LSW Calls for Partial Veto of 340B Manufacturer Mandate Bill
Life Science Washington is also calling on Governor Ferguson to veto Section 3 of SB 5981, the bill addressing hospital contract pharmacy arrangements under the federal 340B program. Vetoing this section would preserve the bill’s transparency and reporting provisions while preventing the expansion of contract pharmacy mandates before the state has better data on how the program operates in Washington. Maintaining the transparency requirements will help policymakers determine whether the 340B program is truly lowering prescription drug costs and expanding care for patients, or simply generating additional revenue for hospital systems.
Additional Tax Legislation, Passed or Defeated
- DEFEATED: HB 2292/SB6229 capital gains tax on small business stock.
- DEFEATED: HB 2100/SB 6093: statewide payroll tax
- PASSED: SB 6347: amending the estate tax. In addition to the tax rates being reduced, the exclusion is now $3M. Both chambers showed bipartisan support for the bill, with the House passing this bill on an 85-8-5 vote and the Senate on a 39-10 vote.
- PASSED: SB 6113: amending sales and use tax changes enacted in 2025