HB 2617 eliminates Washington's current "fund split" funding method, which forces public colleges and universities to use tuition revenue for mandatory costs like faculty salaries and benefits. Instead, it requires the state to cover these costs directly, freeing tuition revenue to improve educational quality and student services. The bill also mandates a study by the Washington State Institute for Public Policy to define essential student services (such as counseling, tutoring, and career support) and determine their required funding levels, with a report due by December 2026. This aims to address structural underfunding that has reduced program offerings, increased class sizes, and strained institutional budgets.
HB 2626 increases Washington State's insurance premium tax for certain health insurance providers. Starting March 1, 2027, it raises the tax rate from 2% to 3% on premiums collected by health maintenance organizations, health care service contractors, and self-funded health plans. A new 1% tax also applies to disability insurers and certain group stop-loss insurers beginning March 1, 2028. Providers must pay these taxes in installments (45% by June 15, 25% by September 15, 25% by December 15) annually, with exemptions for Medicare/Medicaid payments and specific dental services. The bill directly affects these insurers by altering their tax obligations under state law.
SB 6295 creates a new homestead property tax exemption program primarily for homeowners in Washington. It exempts the first $500,000 of assessed value for eligible primary residences (including single-family homes, multi-unit dwellings with separate taxation, and certain manufactured/mobile homes) starting in 2028. The exemption amount increases annually based on state levy growth and requires homeowners to claim it annually by June 30th through county assessors. This policy directly affects Washington homeowners who qualify as primary residents, reducing their state property tax burden without impacting existing exemptions.
HB 2628 requires the state budget outlook work group to update Washington's official budget outlook quarterly to reflect the most recent revenue forecasts, in addition to annual updates in January (based on the governor's proposed budget) and November (to account for fiscal year adjustments). The bill mandates that these updates include detailed projections of state revenues and expenditures, key budget drivers, and clear explanations of the assumptions used. It directly affects the budget work group and all state agencies responsible for providing budget data. This ensures the legislature and governor have current, accurate budget information for decision-making.
HB 2288 creates a dedicated "laboratory accreditation account" in the state treasury to hold fees collected under state law for environmental laboratory programs. It requires all such fees to be deposited into this account, with funds only spendable after legislative appropriation for authorized environmental activities. The bill also clarifies that existing air pollution control fees must stay in their designated account and can only fund air quality programs, not other state priorities. These changes ensure environmental fee collections directly support related programs without diversion to other uses.
HB 2657 establishes an abortion savings program funded by an annual assessment on health carriers. Health carriers must pay $0.82 per coverage month in 2027 (then $0.165 annually), with revenues deposited into a dedicated account. The program provides grants to eligible organizations offering direct patient abortion clinical care services, prioritizing access for individuals without sufficient resources where federal funding is prohibited. Strict privacy protections prevent disclosure of identifying information for staff, providers, or patients receiving services, and all grant funds must be used solely for approved abortion care. The bill directly affects health carriers through the assessment and abortion care providers through grant eligibility.
HB 2398 creates a tax credit for Washington small businesses (50 or fewer employees) that provide maritime trade educational assistance to employees working aboard or servicing U.S. flagged vessels. The credit covers 100% of eligible training costs - such as tuition, tools, and maritime certification programs - up to $20,000 per business annually, with unused credits carryable for five years. It applies to both business and occupation taxes (Chapter 82.04 RCW) and public utility taxes (Chapter 82.16 RCW), excluding overlapping credits. The credit expires for claiming on January 1, 2038, and the law ends January 1, 2039. Eligible employees must be enrolled in Washington maritime training programs supporting careers like commercial fishing, marine engineering, or vessel operations.
HB 2295 allocates $66.7 million from the state building construction account to fund competitive grants for community hospitals and providers expanding behavioral health services. The bill directly affects facilities seeking to build or preserve mental health and substance use treatment capacity, requiring projects to address geographic gaps in underserved areas. Key provisions mandate grants cover construction/equipment costs only (not operating expenses), require 10-year facility commitments, and prioritize youth/adult bed capacity, crisis centers, and specialized care for populations like those with traumatic brain injury. Funding must be distributed based on regional needs, with priority given to projects in areas lacking current services.
HB 2579 establishes two new state-funded programs to expand public media access and digital equity in Washington. It creates a public media broadcaster program prioritizing community-based, noncommercial radio/TV stations that provide public safety information and arts access, with 85% of funds going to larger organizations ($1M+ budget) and 15% to smaller rural or hyper-local broadcasters. The digital equity program funds resource coordinators and multimedia trainers at community anchor institutions (like libraries and schools) to improve internet access, online safety training, and multilingual resources for underserved communities. Both programs require annual reporting and mandate that all funding be spent within Washington.
SB 6122 increases flexibility for Washington school districts in how they spend basic education funding. It removes requirements that previously mandated specific teacher-student ratios, instructional approaches, or staff classifications, allowing districts to allocate funds based on their actual needs. The bill establishes "prototypical" school models (elementary, middle, high) to calculate base funding levels, but requires adjustments based on each district’s actual student enrollment and grade-level composition. School districts must also report per-pupil funding transparently on their websites, as mandated by the superintendent of public instruction.
