Following nearly eight months of interim, it is time for legislators to head back to Olympia for the 2026 legislative session, which starts on Monday, January, 12, 2026.   The legislature spends the first half of the 60-day legislative session biennium passing the state’s Operating, Capital, and Transportation budgets for the next two years. State law requires Washington to adopt a 4-year balanced budget every biennium. In the second half of the biennium, the legislature convenes for a 60-day supplemental session to adjust the budget in response to current economic conditions.

Since the legislature adjourned in April 2025, revenue collections have been less than what was projected, creating a budget shortfall. The November 2025 revenue forecast showed that since the 2025-27 budget was enacted, collections for the current two-year budget are projected to be about $390 million lower than anticipated. This decrease is attributed to fewer housing permits, lower employment, and slowed personal income growth. You can read more about the forecast here.

Just before the new year, Gov. Bob Ferguson released his budget proposal, which is the first step in the supplemental budget process. Ferguson’s proposal included a $79 billion operating budget that avoids general tax increases but does target a few business taxes.  His budget also cuts or delays an array of state services while taking $880 million from the state rainy day fund and redirecting nearly $570 million in Climate Commitment Act money.

During the upcoming legislative session, both the House and Senate will release their own budget proposals, after which negotiations will begin. Several potential revenue options have already been discussed, including a payroll expense tax, a wealth tax, and an income tax on households earning more than $1 million annually. Because the Legislature passed the largest tax package in Washington State history last session, it remains unclear whether additional taxes will receive enough support to pass during this

short session. However, we expect these proposals to receive significant attention.

While the state budget deficit and new revenue proposals will largely dominate the upcoming session, we also expect the legislature to focus on key issues, including transportation maintenance, housing affordability, addressing Medicaid cuts, artificial intelligence regulations, and critical energy production and transmission issues. Please see below for more information on prefiled bills, new members, key legislative dates and other helpful links:

New Members:

Key Highlights Heading into Session:

Legislators were able to start pre-filing bills starting in December. Click here for an updated list of prefiled bills.

Caucus comments on Governor’s budget:

Helpful Links for Session:

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
  • March 12, 2026: Last Day of Session