We’ve made it to the end of yet another legislative session. This year, the legislature raced to fit their work into the eight-week short session while attempting to balance the budget and react to federal cuts and policy changes due to HR1.
While we always fight for progress, this year we recognized the need to focus on defense and maintenance. Our priority this session was to pass progressive revenue in order to backfill lost federal funding and maintain critical services like Medicaid and SNAP. We are grateful for the legislature’s attention to addressing our state’s tax code and maintaining the level of social services that Washingtonians rely on. While there were some missed opportunities for progress towards fairer systems, the legislature took action to protect Washingtonians from the worst impacts of HR1.
Legislative Recap
The Millionaire’s Tax: One of the biggest wins and most publicized debates of the session was the passage of the Millionaire’s Tax, a 9.9% tax on personal income over $1 million/year, beginning in 2029. Once enacted, this progressive revenue source will generate $3.4 billion annually to fund critical services including education, healthcare, food security and more, while also hugely expanding eligibility for the Working Families Tax Credit to over 1.2 million more Washingtonians. It also eliminates sales tax on everyday hygiene items (like soap, toothpaste, and shampoo) and cuts B&O tax for small businesses. Overall, this bill helps balance Washington’s upside-down tax code by cutting taxes for low and middle income Washingtonians while asking the ultra-wealthy to pay their fair share.
Maintaining strong regulations on payday loans: Advocates prevented the passage of an industry-backed bill that tried to weaken regulations on payday lending. These high-interest loans profit off consumers in the most vulnerable economic circumstances by piling fees on top of loan repayment. By maintaining the existing regulations which have worked well for years, our legislature chose to protect residents, not corporate profits.
Protecting SSI for youth in extended foster care: The passage of SB 5911 ended Washington’s shameful practice of garnishing SSI payments from youth in extended foster care. This practice had taken millions of dollars from vulnerable communities to be added to the state’s General Fund. We hope next year to see this practice end for all children in foster care, so that Washington can stop using the residents it is supposed to protect as a revenue source.
Missed opportunities: By failing to pass several bills, the legislature missed opportunities to better support Washingtonians. Among these is the Well Washington Fund (HB 2100), a progressive revenue proposal that would have imposed a company-paid tax on high salaries and generated $2 billion annually. While the Millionaire’s Tax is exciting, the Well Washington Fund would have generated immediate revenue to support Washington communities from large corporations who benefit from the labor of Washingtonians. Another missed opportunity was SB 5993, a bill that would have eliminated interest on new medical debt.
You can see the final status of more bills we worked on in our Bill Tracker.
Final Budget Analysis
It Takes A Village was this year’s policy agenda theme, and as the session comes to a close we are reflecting on the communities of advocates who showed up for their village with heartfelt stories and fierce testimony. Thank you for being part of the Poverty Action community and using your voice to work towards economic stability for all Washingtonians!
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