Published date: February 23, 2026

Week 7 Legislative Update

Revenue Forecasts Shape the Budget Debate

The Legislature completed week seven of the 60-day session with the release of updated revenue forecasts for both the operating and transportation budgets.

Operating Budget Forecast
The state’s Economic and Revenue Forecast Council projects collections will increase by $827 million (1.1%) in the current biennium compared to the November forecast, reflecting early proceeds from last year’s tax increases. Collections are now projected to total $75.3 billion for the biennium — approximately $438 million higher than the assumptions used to craft last spring’s budget.

Transportation Revenue Forecast
Transportation revenues are projected at:

  • $8.741 billion (2025–27)

  • $10.747 billion (2027–29)

  • $10.273 billion (2029–31)

Despite last year’s transportation revenue package, total revenues for the 2023–25 through 2027–29 window are now forecasted to be $118 million lower than assumed in the enacted 2025–27 budget. The decline is attributed primarily to lower fuel tax collections (reduced consumption) and decreases in license and permit fees from fewer vehicle registrations.

Looking long term, inflation-adjusted transportation revenues are expected to decline beginning in 2029 — falling 11.2% between 2029 and 2035. Excluding transfers, the decline is projected at 2.5% over that period. These trends will significantly influence upcoming maintenance, preservation, and capital decisions.

Budget Proposals Incoming

With forecasts now in hand, operating and transportation budget proposals are expected imminently. The Governor’s transportation proposal assumed $3.4 billion in bonding for maintenance, preservation, and ferries. House and Senate approaches may differ, particularly on bonding strategies — a key issue for public works and infrastructure delivery statewide.

Finishing Floor Action

House of origin floor action continued this week until the Tuesday, February 17th deadline.  The House worked on Saturday and the Senate spent most of Monday passing the millionaires tax, SB 6346. Senate Majority Democrats advanced legislation to tax households earning more than a million dollars. Passage of the bill followed a three-and-a-half hour debate. Three Democrats joined all 19 Republicans in opposing the bill, which passed 27-22, and now goes to the House for consideration. It is scheduled for a hearing in the House Finance Committee next Tuesday.

Major bills that failed to survive the house-of-origin deadline:  see Washington Standard https://washingtonstatestandard.com/2026/02/18/more-bills-falter-as-time-dwindles-for-washington-legislature/

The House passed 197 house bills and the Senate passed 208 senate bills.  On Wednesday, the policy committees started churning through bills from the opposite chamber and will continue to do so until the policy committee deadline on February 25th.  The fiscal committees have until March 2nd.

Hearings of Interest:

Law & Justice (Senate) – SHR 4 and Virtual JACB – 2/23 @ 10:30am

SHB 2203 – Public Hearing – Creating the offense of reckless interference with emergency operations. (Remote Testimony Available).
ESHB 2095 – Public Hearing – Protecting vulnerable users of public ways. (Remote Testimony Available).

Appropriations (House) – HHR A and Virtual JLOB – 2/23 @ 4:00pm

HB 2289 – Public Hearing – Making 2025-2027 fiscal biennium supplemental operating appropriations.

Transportation (House) – HHR B and Virtual JLOB – 2/23 @ 4:00pm

HB 2306 – Public Hearing – Making supplemental transportation appropriations for the 2025-2027 fiscal biennium. (Hearing is on the Proposed Substitute.)

Transportation (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/23 @ 4:00pm

SHB 1823 – Public Hearing – Modifying transportation improvement board provisions. (Remote Testimony Available).

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/23 @ 4:00pm

SB 5998 – Public Hearing – Making 2025-2027 fiscal biennium supplemental operating appropriations.

Capital Budget (House) – HHR B and Virtual JLOB – 2/24 @ 8:00am

HB 2295 – Public Hearing – Concerning the capital budget. (Hearing is on the Proposed Substitute.)

Law & Justice (Senate) – SHR 4 and Virtual JACB – 2/24 @ 8:00am

SHB 2203 – Exec Session – Creating the offense of reckless interference with emergency operations.
ESHB 2095 – Exec Session – Protecting vulnerable users of public ways.

State Government, Tribal Affairs & Elections (Senate) – SHR 2 and Virtual J.A. Cherberg – 2/24 @ 1:30pm

SHB 2420 – Exec Session – Increasing small works roster contract limits.

Transportation (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/24 @ 4:00pm

SB 6005 – Public Hearing – Making supplemental transportation appropriations for the 2025-2027 fiscal biennium. (Remote Testimony Available).
SB 6225 – Public Hearing – Authorizing bonds for transportation funding. (Remote Testimony Available).

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/24 @ 4:00pm

SB 6003 – Public Hearing – Concerning the capital budget.
E2SHB 2251 – Public Hearing – Concerning climate commitment act accounts. (Remote Testimony Available).

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/25 @ 1:30pm

SB 5998 – Exec Session – Making 2025-2027 fiscal biennium supplemental operating appropriations.

Appropriations (House) – HHR A and Virtual JLOB – 2/25 @ 4:00pm

HB 2289 – Exec Session – Making 2025-2027 fiscal biennium supplemental operating appropriations.

Transportation (House) – HHR B and Virtual JLOB – 2/25 @ 4:00pm

HB 2306 – Exec Session – Making supplemental transportation appropriations for the 2025-2027 fiscal biennium.

Capital Budget (House) – HHR B and Virtual JLOB – 2/26 @ 8:00am

HB 2295 – Exec Session – Concerning the capital budget.

Transportation (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/26 @ 8:00am

SB 6005 – Exec Session – Making supplemental transportation appropriations for the 2025-2027 fiscal biennium.
SB 6225 – Exec Session – Authorizing bonds for transportation funding.

Transportation (House) – HHR B and Virtual JLOB – 2/26 @ 1:30pm

ESSB 6262 – Public Hearing – Increasing the maximum weight of certain vehicles subject to transportation benefit district vehicle fees. (Remote Testimony Available).

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/26 @ 1:30pm

SB 6003 – Exec Session – Concerning the capital budget.
E2SHB 2251 – Exec Session – Concerning climate commitment act accounts.

Transportation (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/27 @ 1:30pm

ESHB 2172 – Public Hearing – Concerning route jurisdiction transfer and abandonment. (Remote Testimony Available).
SB 6352 – Exec Session – Concerning transportation resources.
E2SHB 2251 – Public Hearing – Concerning climate commitment act accounts. (Remote Testimony Available). (If measure is referred to committee

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