Dear Chamber Members,

Now that the 2026 Washington State legislative session has wrapped up, I wanted to share a few reflections and updates.

First, thank you. Many of you engaged with us throughout the session by sharing insights, participating in conversations with lawmakers, and helping us explain how proposed policies affect real businesses and real jobs. That input helps ensure the employer’s perspective is part of the conversation.

This was one of the most active sessions in recent memory when it comes to taxes and economic policy. The Chamber stayed closely involved throughout the process to make sure our region’s economic voice was present in Olympia.

A few highlights from the session.

Where we engaged:
• The Chamber tracked and engaged on more than 50 bills this session.
• Over 40 proposals involved taxes or new revenue policies.
• Our team provided testimony, worked through statewide coalitions, and met regularly with lawmakers to share data and employer perspectives.

Budget context

The operating budget adopted this year now totals nearly $80 billion, relying in part on new taxes and revenue changes. This follows record tax increases adopted just last year.

At the same time, the Legislature also passed the capital budget and transportation budget, both of which remain critical to Washington’s long-term economic competitiveness. Investments in infrastructure, housing, and transportation systems are essential to supporting economic growth across the state.

With budgets of this scale, it becomes even more important that we strengthen transparency, measurable outcomes, and public trust in how resources are being deployed.

Major policy changes
• SB 6346 – Millionaires’ Tax (Passed)
Creates a new tax on high income earners and represents a significant shift in Washington’s tax structure. Throughout the process we worked to bring forward economic data and employer perspectives about long-term competitiveness and investment impacts.

This does not go into effect for a few years, assuming it survives legal and political challenges.

Housing supply

Several bills passed this year that aim to expand housing supply, which remains one of the biggest economic challenges facing employers and workers in our region.
• HB 1859 – Housing Development on Religious Organization Land (Passed)
Allows housing development on land owned by religious institutions and creates new opportunities for housing partnerships.
• HB 1345 – Detached ADUs (Passed)
Eases restrictions on detached accessory dwelling units and helps expand housing options in existing neighborhoods.
• HB 2269 – Middle Housing in Unincorporated Areas (Passed)
Encourages additional housing types in growing areas of the state.
Increasing housing supply remains a critical part of supporting workforce availability and economic stability.

Economic development planning

The Chamber supported SB 6289, which would have created a statewide economic development strategy.

While the bill itself was not the right vehicle this year, we worked with lawmakers and partners across the state to ensure funding for this effort was included in the state budget, allowing the Washington State Department of Commerce to move forward with developing a statewide economic development plan.

Washington currently lacks a coordinated statewide strategy for growing jobs, attracting investment, and supporting business development. We look forward to helping shape that work as it moves forward.

Proposals that did not move forward
• A statewide payroll expense tax proposal did not advance this session. The Chamber strongly opposed this measure because of its potential impacts on hiring, expansion, and job creation.

Looking ahead

Many of the policy debates we saw this year will likely continue. Questions around taxation, economic competitiveness, housing supply, and long-term fiscal sustainability are not going away.

Our role now is to help members understand what has changed, how these policies affect the business environment, and where we can work with policymakers to strengthen economic outcomes for the region.

Just as important, we will continue working with leaders across government, business, and community organizations to ensure that Washington remains a place where businesses can invest, workers can thrive, and communities can succeed.

The strength of this region ultimately comes from the businesses, entrepreneurs, and workers who power our economy every day. Your engagement and leadership remain essential to the success of this state.

Thank you again for your continued partnership.

Joe Nguyễn
President and CEO, Seattle Metro Chamber