SOUTH SOUND CHAMBER OF COMMERCE LEGISLATIVE COALITION 2026 LEGISLATIVE REPORT – January 16, 2026
Week One Update
The Session Gets Moving
The 2026 Washington State Legislative Session opened at a fast pace, with lawmakers wasting little time introducing bills, holding committee hearings, and outlining priorities for the 60‑day session. Interesting there is a huge number of policy bills for a 60 day session that is supposed to focus on solving an on-going, multi-billion dollar budget problem.
Governor’s State of the State: Setting the Frame
Governor Bob Ferguson’s first State of the State address emphasized economic stability, fairness, and practical problem‑solving in the face of a projected budget shortfall. He highlighted targeted tax relief for small businesses, continued investment in infrastructure, and expanded support for childcare and workforce development. At the same time, the Governor acknowledged that new revenue discussions—particularly those aimed at higher‑income households—will be part of the session, underscoring the need to balance competitiveness with fiscal responsibility.
Housing: Targeted Fixes, Not Sweeping Reform
Housing policy surfaced early in committee hearings, though this session appears focused on incremental adjustments rather than large‑scale reforms seen in prior years. Bills introduced and heard in Week One include proposals to allow or expand residential development in commercial and mixed‑use zones (e.g., SB 6026) and measures aimed at streamlining local zoning and permitting processes. For South Sound communities, these conversations are closely tied to workforce availability, commute times, and the ability of local employers—especially retailers and service businesses—to attract and retain employees.
Small Business & Retail Impacts
Small businesses, particularly retailers, are already monitoring a growing list of bills that could affect daily operations. Early proposals touch on employment standards, consumer protection requirements, and tax administration changes. While some measures are intended to reduce barriers or provide relief for smaller employers, others could increase compliance costs or regulatory complexity.
Public Safety and Community Confidence
Public safety featured prominently in Week One, with bipartisan bills introduced to address community safety, law enforcement practices, and public trust. While these bills are not always framed as business legislation, their impacts on downtown vitality, retail corridors, employee safety, and customer confidence are significant.
Transportation: Reliability Over Expansion
Transportation committees were active during the first week, beginning work on supplemental budget proposals and system reliability. Early hearings focused on preserving existing infrastructure, improving project delivery timelines, and maintaining critical systems relied upon by commuters and freight movement. While major new revenue packages are unlikely in this short session, transportation funding decisions made this year will have long‑term implications for regional economic growth and access.
Childcare & Workforce Education
Childcare and workforce education rounded out the Governor’s early priorities and quickly translated into bill introductions. Proposals to expand childcare capacity—potentially through public‑private partnerships—were framed as workforce solutions essential to keeping employees in the labor force. Workforce education bills emphasized alignment between education systems and employer needs, focusing on career pathways, training access, and credentials that support regional industries.
Things are moving fast but February 4th cannot come fast enough.