Budgets are moral documents.
Week 12 of Washington’s 2025 Legislative Session brought heightened urgency to Olympia as lawmakers and advocates faced down looming fiscal deadlines and a massive budget challenge. On April 2, the Legislature hit its policy committee cutoff for opposite chamber bills, meaning any policy bills not approved in committee by that date are now considered dead, unless labeled Necessary to Implement the Budget (NTIB). The next major deadline is April 8, the fiscal committee cutoff, when all remaining budget-related bills must pass out of fiscal committees to stay alive. With Sine Die—the official end of session—scheduled for April 27, the coming days are critical to move bills forward, finalize budget negotiations, and ensure that high-impact legislation crosses the finish line.
These cutoffs come amidst growing tension over how to address a projected $15 billion budget shortfall. Budget writers are facing intense pressure to close the gap without deep cuts to essential services. That’s why progressive revenue proposals—which would generate billions by taxing extreme wealth and high-end corporate payrolls—have become a focal point in the debate. This week, Faith Action Network showed up in full support of these justice-based solutions, while also opposing harmful delay bills that would withhold promised support from our most vulnerable neighbors.
✅ SUPPORT FOR PROGRESSIVE REVENUE
On Monday, FAN testified in strong support of two major bills in Senate Ways & Means that offer real solutions for Washington’s regressive tax code and underfunded services:
- SB 5796 – High Earners Payroll Tax on Employers
Imposes a 5% tax on payroll over $176,100/year for large employers with payrolls over $7 million. Raises $2.3 billion per year for education, childcare, healthcare, and basic needs.
- SB 5797 – Financial Intangible Assets Tax
Levies a $10 per $1,000 tax on financial intangible assets (stocks, bonds, ETFs) for individuals with over $50 million in holdings. Affects about 4,300 people with extraordinary wealth, raising $4 billion annually for K-12 education, including special education.
FAN testified that these policies are not only fair, but they are also necessary. For decades, trickle-down economics have failed working families while wealth has concentrated in the hands of a few and corporate profits have soared. It is time to ask those who have gained the most from Washington’s infrastructure, labor force, and resources to contribute their fair share for the common good.
FAN continued our advocacy for progressive tax reform by testifying in House Finance Committee hearings in support of:
- HB 2045 – Investing in Washington families by restructuring B&O Tax
- Modestly increases the B&O tax on high-profit sectors to fund food access, housing, and healthcare. Promotes fairness by ensuring large corporations contribute more to public needs.
- HB 2046 – Financial Intangible Assets Tax
Similar to SB 5797, this bill taxes individuals with over $50 million in financial intangible assets. Funds would support public education and help meet Washington’s constitutional obligation to students.
❌ OPPOSITION TO HARMFUL DELAYS IN SUPPORT
In the House Appropriations hearing, FAN coalition partners and impacted community members testified in opposition to two bills that would delay critical assistance for low-income communities:
- HB 2040 – Delay of ABD/SSI Passthrough Until 2028
Would postpone implementation of a policy that protects retroactive SSI payments from being reclaimed by the state. These funds are essential for dignity and survival.
- HB 2039 – Delay of Child Support Passthrough for TANF Families Until 2029
Would continue the practice of seizing child support payments meant for children in families receiving TANF—diverting money from the most vulnerable kids to the state budget.
FAN strongly opposes these delay bills. Justice delayed is justice denied—and we must not balance the budget on the backs of those with the least.
📉 GOVERNOR’S BUDGET PRESS CONFERENCE
Governor Bob Ferguson held a press conference on Tuesday rejecting the use of a wealth tax to balance the current budget. While expressing long-term support for progressive revenue, he stopped short of endorsing it as part of the immediate budget solution—frustrating advocates who fear the burden will again fall on working families. FAN maintains that this is precisely the time for bold action and moral clarity. We cannot solve this crisis by preserving the wealth of a few at the expense of essential care for our communities.
📣 WHY PROGRESSIVE REVENUE MATTERS
Washington has the second most regressive tax system in the country—with the lowest-income residents paying a higher percentage of their income in taxes than the wealthiest. FAN’s advocacy for SB 5796, SB 5797, HB 2045, and HB 2046 reflects our faith-rooted belief in shared responsibility, equity, and justice.
Meanwhile, delay bills like HB 2040 and HB 2039 reveal what’s at stake if we fail to raise revenue: we’ll continue to deny promised aid to those who need it most. Let’s choose a different path—one grounded in compassion, fairness, and our deepest shared values.
Together, we can build a more just and resilient Washington.
Today in Fiscal Committees: 5 Key Bills Up for Hearing
Friday, April 4 is a big day in the Washington State Legislature, with several important bills scheduled for public hearings in fiscal committees (Senate Ways & Means and House Appropriations):
- HB 1217 Rent Stabilization. Would cap annual rent increases at 7% to protect tenants from rent gouging and prevent displacement.
- SB 5041 Unemployment for Striking Workers. Allows workers impacted by strikes or lockouts to receive unemployment benefits.
- SB 5123 Student Protections. Expands protections for K-12 students based on gender identity, housing status, ethnicity, and more.
- HB 1163 Permit to Purchase Firearms. Creates a permit system for gun purchases to promote public safety and reduce gun violence.
- HB 1432 Mental Health Parity Enforcement. Strengthens access to mental health and substance use treatment by enforcing insurance parity.
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