Here are some top issues we’re watching ahead of WA’s 2026 legislative session
Lawmakers will file back into the Washington state Capitol building in Olympia in less than a month for the start of the 60-day legislative session.
The previous session was defined by a severe budget shortfall and tense tax debates, and it looks as though the 2026 session could prove to be similar.
Here are some of the issues that McClatchy is watching ahead of session, which begins Jan. 12.
WA budget shortfall
Democratic state Rep. Timm Ormsby, who chairs the House Appropriations Committee, has reportedly pegged the current deficit at about $4 billion to keep current services and programs: “And I think that’s a little bit on the low end,” he said, according to The Spokesman-Review.
All eyes are on Gov. Bob Ferguson this month as he prepares to present his first supplemental budget.
The Democratic governor has said that his proposal will hinge on spending reductions, not increased taxes.
Ferguson has also indicated that he’d decline to sign off on spikes in property or sales taxes, which are pathways that could theoretically be explored to quickly generate more revenue.
Democrats’ tax ideas
Ahead of session, some Washington state Democrats have floated new tax ideas. Majority-party lawmakers often say their revenue pitches are geared toward asking the wealthy to pay what they owe; they also cite Washington’s standing as a state with a highly regressive tax system.
Republicans oppose these proposals. Critics point out that Democrats already passed the highest tax increase in state history earlier this year and argue that new tax legislation aimed at big business will eventually be felt by residents.
Other options on the Dems’ revenue buffet table include a payroll excise tax proposal, an income tax on millionaires and a so-called wealth tax that failed to reach Ferguson’s desk last session.
Housing, affordability
Affordability is also top of mind going into 2026. State Rep. Drew Stokesbary, the House Republican leader, qualified it as the most pressing issue facing the state while speaking at the Washington Observer’s 2025 Re-Wire Policy Conference this month.
“How do we make Washington more affordable for the people who want to live, work, grow a family here?” he said, adding: “We need to make the state more affordable, the state budget more affordable, for the people who pay taxes here. We need to make the state live within its means.”
Democratic lawmakers broadcast progressive housing gains following last session, including a much-debated cap on annual rent hikes. This year, they could consider eviction workarounds, permanent supportive housing and financing for rural homes, per the Washington State Standard.
Federal government tension
Washington state and Washington, D.C. continue to butt heads. The U.S. Department of Justice recently sued Washington over the state’s refusal to hand over its voter rolls. And Ferguson has made clear that the state won’t go along with President Donald Trump’s mass deportation agenda.
Earlier this month, Washington Attorney General Nick Brown joined two Democratic legislators in announcing the Immigrant Worker Protection Act. The proposal would “mean that workers get the same information as their employers when federal officials request an audit of their employment eligibility information,” the AG reportedly said at a news conference announcing the prefiled legislation.
Washington lawmakers will also continue to contend with steep federal cuts to social services. H.R. 1, also called the One Big Beautiful Bill Act, made significant reductions to federal spending in Medicaid and the Supplemental Nutrition Assistance Program.
Transportation maintenance
Maintaining the state’s infrastructure might not be as exciting as a shiny new transportation project. But in Ferguson’s view, preservation investment is precisely what the state needs.
The governor recently posted a video to social media touching on the state’s aging bridges. He spoke with a Washington State Department of Transportation employee about how a 75-year-old bridge in Wenatchee needs paint to help prevent corrosion and rust.
The state permanently closed a 103-year-old Pierce County bridge last spring, The News Tribune reported. The bridge, which hadn’t been painted since 1988, had steel supports that had started to deteriorate. Records showed that concerns about rust dated as far back as 2008, according to the Tribune.
Preserving bridges is crucial and needed, Ferguson said.
“We need to invest more as a state of Washington, and that’s what we do in this next legislative session,” he said in the video.
What other issues do you want McClatchy to follow during the 2026 session? Email your suggestions to scarter@mcclatchy.com.
This story was originally published December 22, 2025 at 5:00 AM with the headline "Here are some top issues we’re watching ahead of WA’s 2026 legislative session."
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