Opinion: Historical state income tax and another massive operating budget highlight the end of the 2026 legislative session

Rep. John Ley details the passage of a state income tax, an expanding $80 billion budget, and new Clark County infrastructure funding following the 2026 legislative session.

Rep. John Ley provides his latest legislative update

Rep. John Ley
18th Legislative District

Now that the 2026 legislative session has officially ended, I want to update you on what happened in Olympia over the last two months. Although this was technically a short session, it was difficult and often felt much longer than 60 days. That’s mostly because the majority party made some major policy decisions that will impact families, employers, and communities across Washington. While there were a few areas of progress, I remain deeply concerned about the direction taken by the majority.

Democrats push through state income tax

One of the most significant and disappointing outcomes this session was the passage of a state income tax (Senate Bill 6346). Despite a marathon floor debate and unified Republican opposition, the majority moved forward with a policy that fundamentally changes how Washington funds government.

Republicans fought hard, offering amendments, raising concerns, and standing for taxpayers at every step. We spent more than 24 hours on the House floor highlighting the long-term risks, including the potential for this tax to expand in the future and impact far more families than initially promised. Unfortunately, those concerns were dismissed.

Washington voters have consistently rejected income tax proposals, most recently two years ago with I-2111.

An income tax opens the door to higher overall tax burdens, less transparency, and increased pressure on working families and small businesses. At a time when people are already struggling with inflation and rising costs, this is the wrong approach.

While the governor demanded significant reductions in “regressive” taxes, the final bill contained almost no tax relief for hard-working low- and middle-income families. The majority party not only raided the law enforcement and firefighter (LEOFF 1) pension plan, taking $4 billion, but they also raised other fees and taxes on businesses.

Instead of prioritizing affordability and responsible budgeting, the majority chose to pursue a new revenue stream that grows government. I believe we should be focused on making life more affordable for the people we represent and the small businesses that employ them.

Operating Budget raises additional concerns

In addition to the income tax, Democrats also passed an $80 billion supplemental operating budget that continues a pattern of unsustainable spending. This 11% increase in biennial spending grows government significantly while relying on questionable revenue assumptions and shifting funds to make the numbers work. What’s especially troubling is that this increased spending does not translate into better outcomes for many communities, and the affordability crisis in Washington is real.

At the beginning of session, the state faced another budget deficit of $2 Billion. Instead of relying on stable spending cuts and putting affordability first, as the House Republicans’ budget proposal does, the Legislature drained the state’s rainy-day fund, implemented temporary funding measures, and cut important programs such as education, early learning, health care access, and childcare.

Families in our district are already dealing with higher costs for housing, groceries, fuel, and insurance. This budget does little to address those challenges in a meaningful way. Instead, it prioritizes expanding programs without ensuring long-term fiscal stability or meaningful results.

As we move forward, I will continue advocating for responsible budgeting, lower costs, and policies that put people first – not government growth.

Capital Budget includes important funding for the 18th District

Lawmakers also passed the supplemental capital budget (Senate Bill 6003), which allows lawmakers to adjust funding for construction and infrastructure projects such as schools, housing, water systems, parks, and public buildings. The spending plan also addresses emerging issues and allows us to respond to feedback from administering agencies. The capital budget is funded through a variety of funding sources, including general obligation bonds, dedicated cash accounts, federal funds, and alternative financing contracts.

Together with my seatmate, Rep. Stephanie McClintock, the assistant ranking Republican on the House Capital Budget Committee, I worked to secure more than $10.3 million in funding for the 18th District. I’m happy to see these projects included in the final version.

Funding for Projects in the 18th includes:

$4,050,000 for the Hidden Village Mobile Home Park through the Housing Trust Fund.
$3,500,000 for the Family Forest Fish Passage program.
$309,000 for the Clark County Fire District 3.
$228,000 for Madrona Youth Mental Health and Substance Abuse Treatment Facility tenant improvements that will enable them to open to capacity.
$258,000 for the district distributed antenna system installation.
$400,000 for the city of Battle Ground Remy Park, inclusive play equipment for disabled children.
$1,000,000 for the city of Battle Ground 92nd Avenue Pump Station.
$600,000 for Salmon Creek Wastewater Treatment Plant aeration equipment replacement.

These are all important projects that will benefit our communities and the people who live there.

Update on the Interstate Bridge Replacement Program

Now to the latest on the Interstate-5 Bridge Replacement Project. At a press conference this week, the governor and project leaders highlighted plans to move forward with a new bridge between Vancouver and Portland, with construction expected to begin in 2028. However, a key detail was downplayed: the total projected cost. While the governor emphasized a $7.65 billion estimate for the initial bridge construction phase, the full project is now expected to cost between $13.5 and $15.2 billion.

That’s a massive price tag, nearly equal to our two most recent statewide transportation packages at $16 billion and $17 billion. People deserve to hear and understand the whole project, not just part of it. You can’t separate the bridge from the rest of the project, since taxpayers will ultimately be responsible for the full cost through transportation taxes and tolls.

I’m also concerned about light rail being included in the project, despite opposition from many Clark County residents. Decisions of this magnitude should reflect the community’s priorities rather than be predetermined. The fact that transit, bikes, and pedestrian facilities consume 54% of the bridge surface, while doing nothing to reduce traffic congestion and save people time. That is what you want, yet the program ignores you. Replacing an over-congested three-lane bridge with another three-lane bridge is ridiculous.

We need an affordable bridge that reduces traffic congestion. This bridge proposal delivers neither. Washington and Oregon are building a bridge over the Columbia River, 25% longer, from White Salmon to Hood River, for $1.12 billion. Doubling that cost shows what a new bridge from Vancouver to Portland should cost.

This project is too expensive and has minimal oversight. I sponsored a bill requiring an audit of the program (HB 2669). Sadly, the majority party refused to hold a hearing on the bill. I will continue pushing for greater transparency and a more cost-conscious plan that puts taxpayers first.

Click here to listen to me discuss this project with Lars Larson on KXL. You can also use the links below to see the latest news article about the project.

Gov announces start of I-5 bridge project that GOP lawmaker slams as ‘Outrageous Boondoggle’ – The Center Square

Cost for IBR’s total project ‘most likely’ to be $14.4 billion – Clark County Today

The I-5 Bridge is vulnerable to collapse, but apparently not that vulnerable – Clark County Today

Opinion: ‘This is not the best and most efficient use of the taxpayers’ funds’ – Clark County Today

Op-Ed: The ballooning cost of the I-5 bridge is unjustified – The Center Square

Interstate Bridge cost soars 140%, adding billions to project estimate – Oregon Public Broadcasting

Save the date – In-person town hall

Lastly, be sure to join Rep. McClintock and me at our 18th district in-person town hall meeting on Saturday, Mar. 28, at 10:00 a.m. at the Battle Ground City Hall, 109 SW 1st Street, Battle Ground, WA 98604. In addition to the new state income tax and massive operating budget, this town hall meeting is a great opportunity for you to learn more about everything else that just happened in Olympia that affects you and the entire state of Washington. We hope to see you there.

Thank you, and please stay engaged

Thank you for allowing me to serve you. It’s an honor. Although the session is over, please keep reaching out with your ideas, comments, questions, and concerns. I also encourage you to stay informed on House Republicans’ efforts to fix Washington by following us on Facebook, Instagram, X, and YouTube.