2026 Legislative Recap: A Session Shaped by Pressure, Policy Shifts, and What Comes Next

The 2026 legislative session has officially wrapped—and while it was one of the shorter sessions on paper, it carried significant weight for Washington’s business community and the LGBTQ+ community alike.

This was not a session defined by sweeping new programs or bold expansions. Instead, it was shaped by constraint: tight timelines, ongoing budget challenges, and a legislature navigating how to respond to both state and federal pressures in real time.

And in many ways, that tension showed up in everything—from historic tax proposals to emerging policy conversations around AI, privacy, healthcare, and business stability.

In the video above, Gabriel discusses the session with GSBA’s Advocacy team in Olympia and below is a recap of their conversation and insights. 

A Session Under Pressure

Coming into 2026, lawmakers were already working within a difficult reality: a continued budget deficit and limited options to close it. That pressure set the tone early.

Rather than advancing a large number of policy bills, the legislature focused on what it had to do—passing a supplemental budget—while carefully weighing the impact of new proposals.

The result was a session that felt more cautious than ambitious, with fewer bills moving forward and a clear effort to avoid adding strain heading into a major election year.

A Long-Term Shift: The Millionaires Tax

One of the most significant developments this session was the passage of a new millionaires tax—a policy debated in Washington for years.

The measure introduces a 9.9% tax on income above $1 million, signaling a shift toward a more progressive tax structure.

However, it does not take effect until 2029 and does not address the current budget gap. Instead, it represents a long-term direction—paired with future repeal of the sales tax on services and expanded tax credits.

Where Investment Still Happened

One bright spot this session was tourism investment. Washington has long underfunded tourism promotion, falling behind neighboring states. House Bill 2325 introduces a business-led funding model, allowing industries to pool resources and drive statewide tourism marketing. This approach has the potential to generate billions in new visitor spending and directly support small businesses across the state.

New Frontiers: AI, Tech, and Privacy

While budget conversations dominated much of the session, another trend quietly gained momentum: technology policy. Lawmakers introduced multiple bills focused on artificial intelligence, data privacy, and digital platforms—areas that are evolving faster than regulation can keep up.

A few measures did pass, including requirements to disclose AI-generated content and new regulations around certain chatbot uses. But the larger conversation is just beginning.

For GSBA, these discussions carry unique weight. Technology policy doesn’t just impact businesses—it impacts people, particularly communities that rely on digital spaces for connection, identity, and access to information.

Poorly designed policies can unintentionally:

▪️Limit access to affirming content
▪️Increase surveillance risks
▪️Reinforce bias in AI systems

That’s why continued engagement in these conversations is essential—and why GSBA remains at the table as these policies evolve.

An Election Year

This year, every seat in the Washington State House is up for election, along with half of the Senate.

That means:

✅ New voices will enter the legislature
✅ Committee leadership may shift
✅ Policy priorities could change significantly

And right now—before ballots are cast—is when those conversations are taking shape.

As shared during the recap session, this is when legislators are most open to hearing from the people they represent.

Not just organizations. Not just lobbyists.
But business owners, workers, and community members.

FIND YOUR LEGISLATORS

This live Q&A session was made possible by the GSBA advocacy programming support of DoorDash