The 2026 legislative session begins on Monday, Jan. 12 and is scheduled for 60 days. While the pace of this “short session” will be hectic and filled with some important – and possibly some not-so-important – legislative proposals, the most critical priority for lawmakers is to pass a supplemental budget to address an estimated $4.3 billion shortfall.
If you remember, Democrats in Olympia passed the largest tax-increase package in state history last session. A decade of overpromising and overspending turned a once $15 billion surplus into a multi-billion shortfall. State spending doubled over that decade and taxpayers unsurprisingly couldn’t keep pace. Last year’s budget, which placed added demands on taxpayers, was structured largely around one-time funding sources and short-term fiscal approaches. As a result, the state is once again facing a budget shortfall and state spending and taxes will once again take center stage.
In fact, here are just a few of the tax proposals we’re already seeing for the 2026 session:
A 9.9% state income tax on so-called “high earners.”
A new wealth tax that would hurt job growth send investors fleeing.
A new payroll tax on wages over $125,000, paid by employers and threatening family-wage jobs.
A higher real estate excise tax (REET) that will make housing even less affordable.
An 11% tax on firearms, ammunition, and parts targeting lawful citizens rather than criminals.
These proposals aren’t just bad policy, they are dangerous. Washington state is already projected to have zero job growth in 2026. Some Olympia lawmakers seem determined to make that prediction a reality by punishing employers, investors, and entrepreneurial ambition.
Rep. Travis Couture (on my left) joins me on a tour of Maddie’s Place in Spokane. On my right is Shaun Cross, the President of Maddie’s Place which is non-profit recovery nursery for babies with prenatal substance exposure.
There is a better way! Last week, our House Republican budget leader, Rep. Travis Couture, released his no new taxes budget plan for stability, accountability, and real priorities. He calls it “Affordability First: A Budget for the Working Class.” The four main principles of his budget framework are:
No new taxes, rein in reckless spending, and tax relief.
Strengthen healthcare and food security for Washington citizens.
Restore critical programs, especially for our most vulnerable people.
Budgeting based on results, accountability, and core priorities.
You can read his budget summary here. For a deeper dive into the budget problem, how we got here, and a more detailed look at his proposal, click here.
I wholeheartedly agree with my friend, Rep. Couture. We must right-size state government. Throwing more money at programs that have failed to deliver is not the answer. Majority party legislators have expanded our various safety nets to the point where more and more truly needy are falling through the cracks. As President Ronald Reagan famously said:
“Our welfare system has itself become a poverty trap.”
My first bill for 2026 I recently introduced my first bill for the 2026 session. House Bill 2107 expands the current requirement for the state Department of Labor and Industries (L&I) to make a good faith effort to notify employers or owners within 10 working days if an inspection identifies a hazard that could cause injury. Current law requires notification only for residential construction. My bill would expand that requirement to all general construction.
Do you know someone who would like to serve as a legislative page? Teaching the next generation about our form of government, civic responsibilities and engagement, and the rights and liberties our Founding Fathers fought to protect is vital to the survival of our Republic. The Washington State Page program is an excellent way for students under 17 to gain this firsthand experience, all while earning $65/day. Click here to learn more about the Page program, the requirements, process, and a FAQ. Click here for the Page application. Being a legislative page is a rewarding experience that can set a firm foundation for our students to be an informed and involved citizenry!
Washington Workforce Association I had the opportunity to be a panelists and speaker at the Washington Workforce Association’s (WWA) 2025 Conference last month. The WWA is a nonprofit, nonpartisan organization made up of Local Workforce Development Boards that support efforts to advance the economic health of communities around the state through a skilled and competitive workforce. Ensuring our workers have the skills, knowledge and confidence they need to succeed in an ever-changing economic climate is a true passion of mine. My experience in our state and local communities working with small businesses, larger employers, entrepreneurs, manufacturers, and international corporations has given me insight that I was pleased to share. Our workforce needs and the resources available to help meet these needs continue to evolve. This conference was a great opportunity to interact with local, state and federal leaders in the workforce space as we chart a successful path forward!
Merry Christmas and a Happy New Year! As we head into the holiday season, I want to wish you all a Merry Christmas and a wonderful New Year! May you be surrounded by friends and family and cherish the truly important gifts we’ve been given.
And, if I can be of service, please don’t hesitate to reach out to my office. We are here to help! Thank you for the honor of representing you in Olympia.
Suzanne Schmidt
State Representative Suzanne Schmidt 4th Legislative District RepresentativeSuzanneSchmidt.com 468 John L. O'Brien Building | P.O. Box 40600 | Olympia, WA 98504-0600 suzanne.schmidt@leg.wa.gov 360-786-7820 | Toll-free: (800) 562-6000
