We are now in the two-week home stretch of the 2026 legislative session. All regular committee deadlines have passed, meaning most policy bills that have not already advanced are effectively done for the year, except for measures that impact state revenue or are deemed necessary to implement the budget (NTIB). With House and Senate budget writers having released their respective spending proposals last Sunday, the focus now turns squarely to final negotiations. Over the next two weeks, lawmakers will make the key funding and policy decisions that will determine which proposals ultimately cross the finish line and how state programs and services are funded in the coming fiscal year.
As budget negotiations intensify, two of Life Science Washington’s top priorities remain front and center in our lobbying efforts. We are advocating for $250,000 to support the Center for Biotechnology Innovation and Training at the University of Washington Bothell campus, a proven workforce pipeline program aligned with industry demand, as well as full funding of the Andy Hill Cancer Research Endowment (CARE Fund), which sustains Washington’s leadership in advancing new treatments for patients facing cancer and other life threatening diseases.
Here are high level details on the House and Senate operating budget proposals:
- Operating Budgets: HB 2289 and SB 5998 each total approximately $79B, representing roughly a $2B increase over the current enacted biennial budget.
- Revenue Assumptions: Both proposals assume passage of the Millionaire’s Tax to support ongoing spending.
- Spending Reductions and Fund Shifts: Each budget includes targeted reductions for state agencies and higher education, as well as shifts in one time funding sources. The two chambers differ in how they propose to use climate related revenues.
- Rainy Day Fund Withdrawal: Both plans rely on withdrawing more than $700M from the Budget Stabilization Account to help balance spending, citing inflation, increased caseloads, and other near term cost pressures.
- Legal Judgments and Settlements: A major driver of new spending is the sharp rise in legal judgments and settlement costs against state agencies. The Senate sets aside roughly $1B for these obligations, while the House allocates about $400M, one of the most significant differences between the two proposals.
Millionaire’s Tax
The proposed Millionaire’s Tax SB 6346 was heard again last week in the House Finance Committee. A total of 284 individuals signed in to testify, and 129,687 people registered positions through the Legislature’s online system, with roughly 90% opposed. The House Finance Committee passed it on Friday, by a vote of 9-6. A group of progressive House Democrats were successful in pressing for amendments to remove the provision that would bring an early end to a tax surcharge on companies making more than $250M per year. The committee also adopted an amendment to roll back the expanded sales tax on services a year earlier, to January 1, 2029. It now goes to the House floor for a vote.
After the Finance Committee vote, Governor Ferguson expressed concern that the bill does not offer enough tax relief to individuals and small businesses. And any changes the House makes to the bill must be approved by the Senate. There’s much more work to be done between the House, Senate, and Governor, to negotiate an agreement and only 11 days in which to do it.
340B
The House Appropriations Committee heard SB 5981, the 340B contract pharmacy mandate bill, on Friday. It’s scheduled for executive session on Monday. Rep. Marshall is offering several amendments, including to delay the prohibitions on manufacturers regarding the delivery or acquisition of 340B drugs, and data relating to such 340B drugs (Section 14), until January 1, 2029.
Efforts are also underway to introduce amendments to strengthen the nexus between the discounts offered by manufacturers and improving patient outcomes through lower costs and improved access to care, rather than simply increasing hospital revenue.