By Jim Hedrick, GSI WA State Lobbyist and Spokane Regional Advocate
The first week of the 2026 Washington State Legislative Session is complete, as lawmakers returned to Olympia for what is expected to be a fast-moving, 60-day session shaped by several powerful forces: a sharpened progressive edge following the 2025 special elections, a deeply challenging budget environment, frustration and uncertainty emanating from Washington, D.C., and the early shadow of the 2026 election cycle.
Together, these dynamics have created an atmosphere of urgency, narrow timelines, and heightened political stakes. As fiscal pressures intensify and policy priorities collide, legislators will face difficult tradeoffs and high-stakes negotiations that will define the remainder of the biennium and set the tone for the year ahead.
What a Difference a Year Makes
Setting the early tone was Governor Bob Ferguson’s State of the State address on Tuesday afternoon. In last year’s address, Ferguson struck a notably moderate tone, signaling potential course corrections and making overtures to Republican priorities such as increased funding for law enforcement and ensuring farmers received promised rebates under the Climate Commitment Act (CCA).
This year’s address marked a sharp departure. Ferguson leaned fully into a progressive agenda, calling for increased funding for low-income housing, new progressive revenue sources including a tax on millionaires, support for legislation barring federal immigration agents from concealing their identities, and philanthropic support for early childhood education. Notably absent was significant discussion of the state’s multi-billion-dollar budget shortfall. In a visible show of displeasure, several legislative Republicans walked out during the address. Democrats, by contrast, enthusiastically applauded the governor—another marked contrast from a year ago.
The partisan divide was already evident during Monday’s opening-day ceremonies. House Speaker Laurie Jinkins (D-Tacoma) emphasized the Democrats’ expanded majority and electoral mandate, stating: “Democrats have a larger majority in the House, and direction from the people of this state on issues like child care, education, and the environment… I don’t intend to let them down.” Republican Minority Leader Rep. Drew Stokesbary (R-Auburn) struck a sharply different tone, arguing that the state is struggling under current leadership: “House Republicans will continue to fight for solutions to address our state’s ‘catalog of crises’—from affordability, to public safety, to homelessness. Our goal is to fix Washington.” Rarely has a session begun with this level of overt finger-pointing. Olympia Democrats blame Republicans in Washington, D.C. for the state’s challenges, while Olympia Republicans place responsibility squarely on Democratic leadership at home.
A Bleak Budget Picture
The legislature faces a projected $2.3 billion budget shortfall. Governor Ferguson’s December budget proposal addresses this gap through a mix of fund transfers, elimination of certain tax incentives, and spending reductions. Despite headlines surrounding a proposed millionaire’s tax, that revenue source does not appear in Ferguson’s budget. Instead, the proposal includes approximately $880 million transferred from the Budget Stabilization Account (the state’s constitutionally protected “rainy day fund”), redirection of hundreds of millions of dollars in Climate Commitment Act revenues (originally intended for climate and clean-energy programs) to support general government operations, including the Working Families Tax Credit, roughly $300 million generated through closing tax exemptions and modifying administration of the capital gains tax and nearly $800 million in spending reductions.
One of the most controversial elements is nearly $350 million in cuts to early childhood education programs, which has prompted significant backlash from education advocates. In response, Ferguson used his State of the State address to propose seeking philanthropic funding to backfill these reductions, an unusual approach that has drawn both interest and skepticism.
As required by law, the governor submitted a balanced four-year budget outlook. Fiscal committees in both chambers spent the first week of session reviewing Ferguson’s operating, capital, and transportation budgets, providing legislators a sobering look at the depth of the state’s financial challenges.
Critics argue that reliance on reserves and diversion of climate dollars to cover ongoing expenses risks undermining long-term investments and leaves the state vulnerable in future downturns. Adding to the tension, Senate Ways & Means Chair June Robinson (D-Everett) warned colleagues in late 2025 that she would not entertain new budget provisos this session. House members, meanwhile, have reportedly been asked to identify their top priorities to protect from cuts.
Fall 2025 Special Elections
Progressive Democrats scored notable victories in the November 2025 special elections, defeating business-aligned Democrats and a Republican in several high-profile races. These outcomes have subtly but meaningfully shifted the ideological balance within the Democratic caucus and may embolden progressive lawmakers as budget decisions loom. Democrats control the governor’s office, both legislative chambers, and all statewide offices. Whether recent election results will translate into passage of a significant new revenue package remains an open and closely watched question.
Complicating matters further is the approaching 2026 election cycle. All 98 House seats will be on the ballot, along with roughly half of the 49 Senate seats. Already, Senator Sharon Shewmake (D-Bellingham) has announced she will not seek reelection in one of the state’s most competitive districts, and Senator Rebecca Saldaña (D-Seattle) is leaving the chamber to pursue a seat on the King County Council.
Legislative Process and Cutoff Dates
The 60-day session follows a structured timeline governed by “cutoff dates” agreed to by both the House and Senate:
- February 4 – Policy committee cutoff (bills must pass their original policy committee)
- February 9 – Fiscal committee cutoff in the chamber of origin
- February 17 – Chamber of origin floor cutoff (official midpoint of session)
- February 25 – Opposite-house policy committee cutoff
- March 2 – Opposite-house fiscal committee cutoff
- March 6 – Opposite-house floor cutoff
- March 12 – End of session (conference committees and final negotiations)
After floor cutoff, remaining bills must be reconciled through conference committees or the amendatory process before final passage.
Looking Ahead
In the coming week, attention will shift from broad messaging to bill movement, as policy committees begin narrowing the field ahead of the first cutoff. Budget writers will quietly, privately test the appetite for additional revenue among their members, while early childhood education funding and use of Climate Commitment Act dollars are likely to emerge as early fault lines. With timelines tightening quickly, the decisions made in the next two weeks will shape which priorities survive and which are left behind as the session accelerates.
About the Author
Jim Hedrick is GSI’s State Lobbyist and Owner of H2 Government Relations. Jim has advocated on behalf of our community for more than 20 years and has 26 years of experience in the Washington State legislative and public policy venue as a fiscal analyst, legislative advocate, and political advisor to the Governor, state agency directors, and legislative officials.
About this Blog
As part of GSI’s year-round work with our community to advance policies that support the success of local businesses, we’re active in Washington State’s current legislative session – tracking bills, advocating on behalf of our community, planning our annual trip to Olympia, communicating our State Agenda, and working with our lobbyist, our Regional Advocacy Committee, and our elected officials, to advance priorities that support local businesses and enhance our community. Learn more about what we do to create a greater voice for the future of our region and view this year’s State Legislative Agenda.
