The 2025 legislative session officially adjourned on Sunday, April 27 following the passage of the Operating, Capital and Transportation budgets.
The $77.8 billion Operating Budget covers the next two years and is balanced through roughly $6 billion in cuts and $9 billion in new revenue over the next four years. View an analysis of the final budget.
Governor approval is the next step – he has until May 17 to sign or veto the budget. Notably, the Governor has authority to veto specific sections or subsections, allowing specific budget items to be rejected without striking down the entire bill.
New revenue consists of:
- Business and Occupation (B&O) tax (HB 2081):
- Increases the B&O tax rate on certain activities
- Raises surcharges on large businesses with taxable income over $250 million
- Raises surcharges on service businesses with taxable income over $5 million
- Increases the annual cap for the Advanced Computing Surcharge
- Raises surcharges on large financial institutions
- Sales & Tobacco Tax (SB 5814)
- Expands the sales tax to certain services
- Broadens the tobacco tax to cover products that contain nicotine
- Capital Gains & Estate Tax (SB 5813)
- Imposes an additional 2.9% tax on capital gains over $1 million
- Increases tax on estates of those who died after January 1, 2025
- Raises estate tax exclusion from $2.1 million to $3 million
- Tax break closures (SB 5794):
- Repeals or sunsets several tax exemptions
- Extends the B&O tax to the rental or lease of storage units
- Electric vehicles (HB 2077):
- Taxes the sale of electric vehicle credits between automakers
We’re pleased to share that priority bills for Partners for Our Children were signed into law on Friday, April 25 and funding is included in the final budget:
SHB 1177 – Child Welfare Housing Assistance Program- $500,000Enhances support for families by addressing housing instability as a key barrier to reunification or preservation and serves families currently on a waitlist.
SHB 1509 – Community-Based Family Reconciliation Services- $600,000Sustains a vital model that delivers early intervention and prevention services to families in conflict.
Weekly bill tracker
The P4C tracker highlights bills related to our priorities, particularly in child welfare. Please note that the inclusion of bills in the tracker does not reflect P4C’s position for or against the bill. This bill tracker notes the status of bills as of May 2nd. Bills that were delivered to the Governor within 5 days of the end of the session must be signed or vetoed by the Governor within 20 days.
Final post and thank you
This is likely to be the final update from P4C on the 2025 legislative session, unless the Governor makes any vetoes to the budget. We appreciate this community’s interest and involvement in this year’s legislative session and your dedication to improving the lives of children, youth, and families in Washington state!
