Tuesday marked the House of Origin cutoff, meaning all bills had to pass out of the chamber in which they were introduced to remain alive this session. Legislators worked late nights and through the weekend to move bills off the floor. A number of proposals survived the cutoff; you can view the full list here.

On Monday, the February revenue forecast was released, providing legislators with the amount they have available when building the supplemental budget proposal.  The forecast was positive and shows Washington’s economy has performed a bit better than expected since the November forecast. Employment at the end of 2025 exceeded prior assumptions, reversing concerns about a downward trend, and modest job growth (0.4%) is now projected for 2026. Growth remains steady but slow through 2029, with unemployment expected to peak around 5% in 2027 before improving. Personal income was revised upward, aerospace jobs are beginning to recover, and housing permits ticked up late last year, though inflation (3.1% in the Seattle area) and housing prices remain mixed.

On the revenue side, collections are outperforming expectations. Since November, General Fund–State revenues are up about $340 million, driven largely by sales and B&O taxes, with Real Estate Excise Tax collections are coming in stronger than previously forecast. Because of this, the 2025–27 General Fund has increased by $655.5 million (to $70.4 billion), and when including related accounts, total resources increase by $827.4 million. Overall projected revenue is now $75.3 billion for 2025–27 (12.1% growth over the prior biennium) and $80.4 billion for 2027–29 (6.8% growth).

While the outlook has improved since November, budget writers are still flagging ongoing risks tied to federal policy, trade, inflation, and broader economic uncertainty. Following the release of the forecast budget writers in the House and Senate will finalize their respective budget proposals. The House is scheduled to release their budget proposal on Sunday, February 22nd with a hearing the next day. The budget bill is expected to pass off the floor by the following weekend. The Senate will release their budget proposal sometime shortly after and then negotiations between the House and Senate will begin. You can review the full February Revenue Forecast here.

Wednesday legislators returned to committee to begin hearing bills passed by the opposite chamber. The Senate is now considering House bills, and the House is taking up Senate bills. This process will continue until the opposite house policy cutoff on February 25.

Development

HB 2480,  SB 6026, concerns residential development in commercial and mixed-use zones.  Senate Bill 6026 was heard in the House Local Government Committee on February 20, and is scheduled for executive session on Wednesday, February 25.
 

Income Tax
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 scheduled for February 27.

Data Centers

HB2515, related to data centers , was heard in the Senate Energy, Environment & Technology Committee this week. Executive session is scheduled for February 24.

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: