SOUTH SOUND CHAMBER OF COMMERCE LEGISLATIVE COALITION 2026 LEGISLATIVE REPORT – January 30, 2026

This week marked a transition point in the 2026 legislative session, as lawmakers continued moving bills through policy committees while beginning to narrow their focus ahead of fiscal deadlines. Attention is increasingly shifting from introducing new concepts to determining which proposals can advance within existing budget constraints. Many issues important to the South Sound business community remain active, with several bills moving steadily but without major amendments or final decisions yet.

Budget & Taxes

Budget and tax discussions intensified this week as lawmakers continued to advance a wide range of proposals affecting business costs, local government revenues, and tax administration. Several tax-related bills remain in committee, including measures addressing payroll expense taxes, property tax reform, and business and occupation tax changes. While no major tax packages were finalized this week, the volume of activity signals that revenue policy will be a central focus as the session moves toward budget negotiations.

Small Business, Labor & Regulatory Issues

Labor and workplace policy continues to be one of the most active areas of the session. Bills addressing wages, worker classifications, unemployment insurance, paid leave, and regulatory enforcement remain under consideration. Several proposals that could significantly impact employer costs and compliance obligations are advancing, while others remain in monitoring status as discussions continue around implementation and economic impacts.

Housing, Land Use & Permitting

Housing-related legislation remained a major focus this week, with continued movement on bills addressing affordable housing financing, land banking, permitting processes, and development standards. Policymakers are balancing efforts to increase housing supply with concerns about local control, development costs, and regulatory complexity. Permitting efficiency and financing mechanisms continue to be key themes.

Energy & Climate Policy

Energy and climate legislation continued to move forward, including bills related to the Climate Commitment Act, emissions reporting, utility regulations, and energy infrastructure. While many of these proposals remain in monitoring status, the cumulative effect of these measures could have long-term cost and compliance implications for businesses and local governments across the region.

Workforce, Education & Training

Workforce development and education bills advanced steadily this week, with continued attention on financial aid programs, credential pathways, and workforce education funding. Measures aimed at supporting nondegree credentials, protecting workforce education investment accounts, and improving alignment between education and labor market needs remain active, reflecting ongoing legislative interest in workforce readiness.

Transportation & Infrastructure

Transportation policy discussions continued with movement on bills related to infrastructure funding, transit governance, and freight and roadway safety. While no major transportation funding decisions were finalized this week, these measures signal continued legislative focus on maintaining and modernizing transportation systems critical to regional economic activity.

Looking Ahead

Overall, the Legislature continues to move a large volume of bills forward while preparing for the fiscal decisions that will ultimately shape which proposals advance. For the South Sound business community, the coming weeks will be important as budget considerations and potential amendments clarify the real-world impacts of many of these proposals.

IMPORTANT UPCOMING DATES:

·       February 4th – Bills must be out of house of origin policy committees

·       February 7th – Bills must be out of the house of origin fiscal committees

·       February 8th – SUPER BOWL!  GO HAWKS!

·       February 17th – Bills must be out of the house of origin in order to be considered alive for the remainder of session (unless they are necessary to implement the budget – then they live for the entire session)

·       February 18th or so – House and Senate Budgets are released

At some point in the next few days or weeks, we will see the “Millionaire’s Tax” proposal introduced as a bill.