The 2025 Washington State Legislative Session concluded on April 27 after 105 days of intense budget negotiations, public advocacy, and community organizing. FAN advocates worked alongside our partners to advance justice-rooted policies on economic equity, immigrant and refugee rights, food security, housing, climate, and democracy.

✊ Throughout the session, FAN supporters:

• Personalized and sent 2676 letters to our state legislators and 1122 to our federal legislators
• Signed in PRO and CON countless times to advance FAN’s legislative agenda in committee hearings
• Submitted testimonies on bills
• Emailed personal letters to legislators
• Attended in-district meetings and Town Halls 
• Turned out for Interfaith Advocacy Day and rallies across the state for democracy, progressive revenue, housing justice, and immigrant and workers' rights.

Thanks to your advocacy, FAN helped shape a session with significant wins!

Lawmakers navigated a substantial budget shortfall, ultimately passing a $77.8 billion two-year operating budget. This budget was supported by a suite of tax reforms aimed at generating approximately $9.4 billion over four years to address the projected $16 billion deficit.

Even as we celebrate, we acknowledge that there were also notable delays and missed opportunities. Below is a recap of what passed, what we’re still fighting for, and where we go from here.

🏛️ Session Highlights: Budget Wins and Tax Reforms

The final operating and capital budgets included major investments in housing, food security, and immigrant services:

• $600 million for the Housing Trust Fund – the largest in state history
• $93 million for food banks and $27 million for senior nutrition
• $153 million for Apple Health Expansion, maintaining current immigrant health coverage
• $25 million for the Migrant and Asylum Seeker Support Program
• $18 million for immigration legal services
• $3 million for SNAP fruit & vegetable incentives
• $17 million for school meal expansion through the Community Eligibility Provision
• $130 million in grants to expand capacity for behavioral health care in community settings, including support services for youth in crisis

Despite the dire budget situation, the Legislature stayed true to the promise of the Climate Commitment Act by spending its revenues on reducing pollution and helping frontline communities, rather than diverting some to the state’s general fund for unrelated items. This includes funding for zero-emission trucks and school buses and laying the foundation for progress on building new transmission lines for clean energy and a framework for sustainable marine fuels. 

💰 Key Tax Legislation

On the revenue side, lawmakers passed several notable tax bills to support these investments. Together, these five bills will raise about $9.4 billion over the next four years:

• Business & Occupation Tax Adjustments: House Bill 2081 increased the B&O tax rates, expected to generate nearly $2.1 billion in the next budget cycle and $5.6 billion over four years.​ General rate grows to 0.5%, services over $5M to 2.1%, and financial institutions over $1B to 1.5%. New surcharges: 0.5% on large corporations (over $250M revenue) and 7.5% for tech giants (e.g., Microsoft, Amazon).
• Capital Gains Tax Surcharge: Senate Bill 5813 introduced an additional 2.9% tax on capital gains over $1M (on top of 7% for gains over $270K), projected to raise $282 million in the upcoming budget and $561 million over four years.​
• Sales Tax Expansion: Senate Bill 5814 broadened the retail sales tax to more services, including temporary staffing and advertising, aiming to bring in $1.1 billion for the next budget and $2.7 billion over four years.​
• Tax Preference Eliminations: Senate Bill 5794 sought to eliminate certain tax breaks, anticipated to generate $321.6 million for the next budget.
• EV Credit Sales Tax (“Tesla Tax): HB 2077 taxes sales of EV credits between automakers, targeting a Tesla-specific practice, projected to raise $54.5M for the operating budget.

While all of these highlights are important, the final operating budget and several bills are still awaiting Governor Ferguson's signature. Please join us in taking action to secure these wins using the button below!