This week marked the first major legislative cutoff: the House of Origin Policy Committee Cutoff. On Feb. 4, all bills were required to pass out of the policy committees in their house of origin to remain alive this session. Bills deemed necessary to implement the budget (NTIB), including all revenue proposals, are exempt from cutoff deadlines.

Last Tuesday, Democrats held a press conference to outline the “millionaires’ tax” proposal, which would impose a 9.9% income tax on income over $1 million. You can watch the press conference here. Despite having voiced support for the concept in his State of the State address earlier this session, Governor Ferguson stated that he could not support the proposal as introduced, noting that the tax-relief provisions do not go far enough. Hundreds of people signed up to testify on both sides of the bill. You can watch the hearing here.

While the income tax proposal has received significant attention, it would not take effect until 2028 and therefore does not address the current budget shortfalls. Several revenue measures are under discussion, including increases to nicotine, beer, and wine taxes; elimination of certain tax exemptions; potential transfers from the Climate Commitment Account; spending reductions; and use of the state’s rainy-day fund. The next revenue forecast is scheduled for mid-February, after which both the House and Senate will release their respective supplemental budget proposals.

Data Centers HB 2515 regulates large data centers’ energy use through utility tariffs, clean power requirements, reporting, and a per‑kilowatt‑hour fee. Executive action was taken on HB 2515 and the bill received a do pass recommendation. It is not yet on the floor calendar. The Senate companion, SB 6171, currently sits in Senate Ways & Means. This legislation will be monitored heavily. Watch the executive session here.

Housing and Homelessness

HB 2583, broadens local lodging tax authority by lowering population thresholds for higher combined local lodging tax caps and by allowing public facilities district boards, rather than voters, to authorize certain lodging taxes, including for performing arts centers as well as convention and trade centers. The bill also establishes a two-stage statutory framework through 2035 that maintains existing revenue-sharing requirements for affordable housing while updating references and clarifying governance and rate cap interactions.

HB 2480 and SB 6026 facilitates residential development in commercial and mixed-use zones. SB 6026 received a public hearing in the Senate Ways and Means Committee on February 5 and is scheduled for executive session in the Senate Ways and Means Committee on February 9. HB 2480 was scheduled for executive session in the House Local Government Committee on February 3, but no action was taken. HB 2489, establishes statewide limits on how cities and counties may regulate or penalize “life-sustaining activities” of people experiencing homelessness in public spaces by conditioning enforcement on the availability of adequate alternative shelter. The House Housing Committee held an executive session on HB2489 on Monday, February 2, where a substitute bill was adopted and the bill passed out of committee on a 9-6 vote.

Taxation

HB 2100 and SB 6093, each establish a new 5 percent payroll excise tax on large operating companies’ payroll above the federal additional Medicare tax threshold (effectively $125,000 per employee), with revenues split between the state general fund and a new Well Washington Fund to backfill anticipated federal cuts to health care, higher education, food assistance, energy, and related services.

Important Session Dates:

  • February 4, 2026: House of Origin Policy Cutoff
  • February 9, 2026: House of Origin Fiscal Cutoff
  • February 17, 2026: House of Origin Floor Cutoff
  • February 25, 2026: Opposite House Policy Cutoff
  • March 2, 2026: Opposite House Fiscal Cutoff
  • March 6, 2026: Opposite House Floor Cutoff

Helpful Links for Session: