Washington Legislature Ends Session With Budgets Passed, Tax Debate

Lawmakers navigate late-night drama over data center tax break elimination before adjourning

Mar. 13, 2026 at 7:01pm

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The Washington Legislature concluded its 2026 session on Thursday evening after passing a batch of budgets, including a $79.4 billion operating budget, and navigating late-breaking drama over the elimination of a data center tax break that threatened to throw lawmakers into a special session.

Why it matters

The legislative session saw Democrats use their majorities to pass key policies like a tax on household income over $1 million, while also working to shield the state from what they see as federal overreach. However, lawmakers left some pressing issues unresolved, setting up further work for next year.

The details

The session's final day was marked by a fire alarm evacuation and a close vote to eliminate one of two tax preferences for data center operators, a move that faced pushback from both large tech companies and union labor. Ultimately, the bill passed 51-46, with eight Democrats joining Republicans in opposing it.

  • The Washington Legislature concluded its 2026 session on Thursday evening around 8:30 p.m.
  • The $79.4 billion operating budget passed without any Republican votes.
  • The bill to eliminate the data center tax break passed the House on a 51-46 vote.

The players

Bob Ferguson

The governor of Washington who plans to sign the bill to tax household income over $1 million per year.

Jamie Pedersen

The Senate Majority Leader, a Democrat from Seattle.

Laurie Jinkins

The Speaker of the Washington House of Representatives, a Democrat from Tacoma.

Travis Couture

The lead Republican budget-writer in the Washington House, representing the 35th district.

Joe Fitzgibbon

A Democratic representative from West Seattle who argued the data center tax break was not necessary.

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What they’re saying

“The big objectives were to protect the state of Washington and our people against a hostile, malevolent federal administration. We made pretty good progress on that.”

— Jamie Pedersen, Senate Majority Leader

“Apparently, some people think this budget is alarming.”

— June Robinson, Chief Senate Budget Writer

“This budget is a ticking fiscal time bomb. It spends money the state doesn't actually have.”

— Travis Couture, Lead GOP Budget-Writer in the House

“I won't be coming back next session, at this stage where we are now, looking for new taxes. There's a long way between now and then. Let's start with that. So I won't get too far down that road.”

— Bob Ferguson

“I do not believe this sector needs to be entirely tax-free in order for Washingtonians to benefit from investment and jobs.”

— Joe Fitzgibbon, Democratic Representative

What’s next

The governor plans to sign the bill to tax household income over $1 million per year, and lawmakers will need to address a $878 million budget hole next year.

The takeaway

The Washington Legislature's 2026 session ended with the passage of key budgets and policies, but also left some unresolved issues that will carry over to next year's agenda, including further work to shore up the state's finances.