We are officially in the final stretch of the session. Wednesday marked the Opposite House Policy Committee Cutoff, meaning bills needed to pass out of policy committees in the opposite chamber to remain alive.

We are officially in the final stretch of the session. Wednesday marked the Opposite House Policy Committee Cutoff, meaning bills needed to pass out of policy committees in the opposite chamber to remain alive. Here is a list of bills that survived the fourth cutoff. Legislators are now working late nights and through the weekend to move bills through fiscal committees ahead of the Opposite House Fiscal Cutoff on Monday, March 2.

2025-2027 Supplemental Operating Budget Proposal Summary

On Sunday February 22, 2026, House and Senate budget writers released their respective 2026 supplemental operating budget proposals, updating the enacted 2025-27 biennial budget to reflect the February revenue forecast, caseload changes, inflationary pressures, and ongoing program costs. Both proposals maintain compliance with the state’s four-year balanced budget requirement and include transfers from the Budget Stabilization Account (rainy-day fund), along with adjustments for legal obligations and maintenance-level spending. Where the two proposals diverge most clearly is on assumed new revenue.

The House budget relies on approximately $147 million in new revenue for 2025-27 (growing significantly in 2027-29), driven by insurer taxes, wholesaler prescription drug taxes, data center equipment taxes, and other targeted policy changes, but does not assume near-term revenue from the millionaire’s tax. The Senate proposal assumes roughly $176 million in new revenue in 2025-27 and substantially larger revenue in the out-years, nearly $2.75 billion in 2027-29. The Senate proposal includes expanded data center taxes, wholesaler prescription drug taxes, property tax changes, nicotine taxes, and significant revenue from the millionaire’s tax beginning in the next biennium.

2025-2027 Supplemental Transportation Budget Proposal Summary 

On February 23, 2026, House and Senate transportation budget writers released their respective 2026 supplemental transportation budget proposals updating the enacted 2025–27 plan to reflect revised revenue forecasts, project timing adjustments, and growing preservation and maintenance needs. The House proposal (PSHB 2306) totals approximately $16.5 billion for 2025–27 (about $1.1 billion above enacted levels), with much of the increase tied to reappropriating prior spending authority for delayed capital projects and shifting resources toward highway preservation, maintenance, and ferry system groundwork.

The Senate proposal totals roughly $17 billion in appropriation authority (about $1.5 billion above enacted), including about $10.5 billion capital and $6.5 billion operating, and frames its budget across a three-biennia planning horizon through 2029–31. Like the House, it prioritizes preservation, maintenance, and ferry investments, but a key distinction is that the Senate plan explicitly relies in part on new bond proceeds (authorized in companion legislation) to support its capital program and maintain project delivery.

2025-2027 Supplemental Capital Budget Proposal Summary 

House and Senate capital budget writers released their 2026 supplemental capital proposals with a shared focus on infrastructure, housing, climate resilience, and education, but with notably different financing structures. The House proposal (PSHB 2295) appropriates $910.6 million total, including $399.4 million in debt-limit bonds (nearly all remaining bond capacity) and significant use of Climate Commitment Act (CCA) funds. Beyond direct project investments, the House employs a refinancing strategy: $239.9 million in CCA funds replace bond-funded natural resource projects; those bonds then refinance higher education building projects; and the freed-up higher education building account revenue is redirected to the operating budget. While these account shifts net to zero within the capital budget, they effectively generate operating support through financial restructuring.

The Senate proposal (PSSB 6003) authorizes $382.6 million in new bonds, $219 million in CCA funds, and $723 million in net total funds, with major investments in housing and homelessness, clean energy and water conservation, small school modernization, and flood preparedness. A key structural distinction is that the Senate directly redirects approximately $1 billion in cash resources traditionally dedicated to capital purposes—including capital gains, public works, and higher education building accounts—to the operating budget, while maintaining capital appropriations through offsetting adjustments.

Taxes

SB 6346, establishes a new 9.9 percent state individual income tax on “Washington taxable income” above $1 million beginning in 2028. SB 6346 passed the Senate on February 16 by a vote of 27-22 and was heard in the House Finance Committee on February 24, with executive action in the same committee on February 27.

Zoning

HB 2480, and SB 6026 both require larger Growth Management Act jurisdictions with populations of 30,000 or more that are planning under the act, including non‑rural counties, to allow residential development in most commercial and mixed-use zones.

Data Centers & AI

HB 2515, was heard and passed out of the Senate Environment, Energy & Technology Committee. The committee adopted a striking amendment, along with an additional amendment that further exacerbates concerns from the opposition’s perspective. The striking amendment broadens regulatory oversight of large data centers by requiring utilities to establish dedicated tariff schedules that fully recover costs related to infrastructure, transmission, clean energy compliance, and obligations under the Climate Commitment Act (CCA), explicitly prohibiting cost shifts to other ratepayers. The amendment also restores mandatory load-curtailment requirements.

HB 1170, establishes new transparency, disclosure, and provenance requirements for large generative artificial intelligence providers. HB 1170 passed the House on February 13 on a 56-37 vote and then moved to the Senate.  It was voted out of the Senate Environment, Energy & Technology Committee with a do-pass recommendation. SB 5984 and HB 2225, create a new consumer protection framework for artificial intelligence companion chatbots.

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: House of Origin Floor Cutoff
  • March 2, 2026: Opposite House Fiscal Cutoff
  • March 6, 2026: Opposite House Floor Cutoff

Helpful Links for Session: