State Director Patrick Connor reports from Olympia at the end of Week 6 of the 2026 legislative session

Week 6 of the 2026 Washington legislative session saw a return to committee hearings following Tuesday’s House of Origin cut-off. Our tracking list has dropped from more than 250 to about 50 bills as a result of that deadline.

Policy committees have until Wednesday, February 25, to consider bills originating in the opposite chamber.

Millionaire Tax

The governor’s office has asked to meet with NFIB members and staff to discuss our concerns about the bill’s treatment of pass-through entities, particularly how business earnings and expenses are reported as part of your Adjusted Gross Income (AGI) for federal income tax purposes.

The governor’s team believes those items are deducted from AGI, so firms below about $7 million would likely not have net earnings exceeding $1 million or more annually. NFIB members interested in participating in a group video conference with the governor’s staff next week on this issue can send an email to State Director Patrick Connor, patrick.connor@nfib.org. If you are unable to participate but have examples or other information you could share on the topic, that would be very helpful too.

SB 6346, the Millionaire Tax, passed the state Senate, 27-22, on Monday, February 16, Three Democrats, Sens. Cortes, Hansen, and Krishnadasan, voted with all Republicans against the bill.

The House Finance Committee will hold a public hearing on SB 6346 at 8 a.m. Tuesday, February 24. Sixty-one people have signed up to testify so far: five pro, six other, 50 con. There are 61,625 people signed in on the bill: 56,608 (92%) con, 4,883 pro, 134 other. You can sign-in here.

Townhalls this Weekend

Legislators in 21 districts are hosting townhall meetings this weekend. This is an excellent opportunity to explain, face-to-face, how the proposed Millionaire Tax could affect your small business, especially if yours is a pass-through entity for federal income tax purposes.

Click here for details about events in legislative districts: 5, 10, 21, 26, 27, 28, 29, 33, 36, 37, 40, 41, 42, 43, 44, 45, 47. Or here for meetings primarily with senators from districts 11, 26, 30. In addition, 48th district Sen. Vandana Slatter has just announced a “coffee chat” from 9:30-10:30 a.m. Saturday, February 21, at Soulfood Coffee, 15748 Redmond Way, Redmond, 98052.

Small Business Day

NFIB thanks our guest speakers, members, and guests who attended this year’s Small Business Day at the Capital, February 18, 2026. We are also immensely grateful to our generous sponsors who made this event possible—Larson Financial Group and Rock Point Oyster Co.

Participants heard from Rep. Alicia Rule about health care priorities, including NFIB-requested HB 2293, the Patient Premium Value Act that passed the House Health Care & Wellness and Rules committees, but failed to receive a floor vote before Tuesday’s deadline. Senate Deputy Republican Leader (and NFIB member) Sen. Drew MacEwen briefed the group about Republican efforts to stop the Millionaire Tax and other bad-for-small-business bills being considered this session. Spirited, in-depth conversations about the Millionaire Tax were held with House Finance Committee Chair Rep. April Berg and Senate Ways & Means Committee vice chair for revenue Sen. Noel Frame.

Both Berg and Frame, key negotiators on the Millionaire Tax proposal, expressed a willingness to continue to engage with NFIB and its members on this complex legislation as it continues to move through the process.

Week 7 Preview

In addition to Tuesday’s 8 a.m. House Finance Committee public hearing on the SB 6346, the Millionaire Tax, there are a few other bills where NFIB would appreciate members signing in to support our position. Please sign-in as soon as possible, at least an hour before the hearing starts.

Monday, 10:30 a.m., Senate Labor & Commerce Committee

— HB 2405, L&I PTSD treatment. NFIB supports this pilot program to provide first-responders and nurses quicker access to appropriate medical and mental health treatment using new treatment guidelines while these workers’ compensation claims are processed. Sign-in PRO here.

— HB 2479, Unpaid wage recovery. NFIB co-chaired the workgroup that unanimously recommended this bill to establish a Wage Recovery Fund to give qualifying workers who are victims of wage theft access to an early partial payment against their wage claim. Sign-in PRO here.

Tuesday, 8 a.m., House Finance Committee

— SB 6346, Millionaire Tax. Sign-in CON here.

Thursday, 4 p.m., Senate Ways & Means Committee

— HB 2442, Local government fund use. NFIB opposes this expansion of local government taxing authority. Sign-in CON here.

Prior Legislative Reports

— February 15—NFIB Negotiated Wage Bill Wins Unanimous House Approval

— February 8—NFIB Has Busy Week Testifying on Major Legislation

— February 1—Bills Increasing Workers’ Comp. Costs Advance

— January 25—No Small Business Relief in Millionaire Tax Bill

— January 19—Washington Legislature Opens 2026 Session