WAWG
By Diana Carlen
Lobbyist, Washington Association of Wheat Growers
Washington state will be holding its primary election on Aug. 4. The August primary is used to narrow down the number of candidates for the November general election. The top two candidates in each race, regardless of party affiliation, will move on to the November general election. Half of the Washington State Senate is on the ballot this year, and the entire Washington State House of Representatives is on the ballot. One notable trend emerging this election cycle is the growing number of incumbent Democrats facing primary challengers from their own party, particularly in safely Democrat districts. This dynamic reflects ongoing divisions within the Democrat caucus on issues including housing, public safety, and taxes. Most notably, Senate Majority Leader Jamie Pedersen has drawn a challenger. Several additional Democratic incumbents are also facing progressive challengers, particularly in urban districts.
Washington’s State Supreme Court races have also drawn attention with five of the nine justices on the ballot. Those contests are formally nonpartisan, but both political parties are treating them as important statewide races. The court could play a major role in future disputes over major state policies, including a challenge to the recently adopted income tax on high earners.
Together, these races and measures could make Washington’s 2026 ballot more active than a typical midterm ballot.
Income tax repeal measure headed to November ballot
An initiative to repeal the income tax (IP26-645) has qualified for November’s ballot. The initiative would repeal the state’s recently approved 9.9% tax on adjusted gross income above $1 million for Washington households. The 9.9% tax targets income above $1 million, but would also affect many small and medium businesses structured as pass-through entities.
The tax is scheduled to take effect in 2028, with revenue collections beginning in 2029 if it remains in place. Lawmakers estimate the tax would generate between $3 billion and $4 billion annually to support the state operating budget.
Let’s Go Washington turned in more than 500,000 signatures in early July to overturn Washington’s new income tax on high-earners, nearly double the amount required to secure a spot on the November ballot.
The income tax proposal is also the subject of separate legal challenges filed by business owners who question its constitutionality under longstanding Washington Supreme Court precedent regarding income taxes. Those cases are expected to proceed independently of the ballot measure.
Washington’s water future initiative launched
In May, Gov. Bob Ferguson and the Washington State Department of Ecology (Ecology) announced a new statewide initiative to help Washington prepare for growing water challenges. The initiative is in response to four consecutive years of drought.
As part of the initiative, Ecology is hosting regional roundtables with Tribal governments, local governments, agricultural groups, industries, utilities, environmental organizations, and community groups.
These conversations are designed to:
- Share local challenges.
- Identify what’s getting in the way.
- Highlight practical ideas and solutions that work for different regions.
Washington Association of Wheat Growers staff has participated in a regional meeting in Spokane and a virtual meeting with agriculture and will continue to engage. Ecology will summarize key findings from all the meetings in a report, which will be published later this year.
Gov. Ferguson establishes an cconomic development council
On June 26, 2026, Gov. Bob Ferguson signed an executive order establishing a new economic development council to help craft a statewide economic strategy aimed at keeping Washington competitive. The announcement comes amid slow job growth, an unemployment rate higher than the national average, and a growing number of businesses planning growth outside of Washington state.
The 26-member council will include business, labor, education, and tribal leaders. There is one representative from agriculture from Stemilt Growers.
The council will meet quarterly. The primary focus of the group will be to evaluate the competitiveness of the state economy relative to other states, review the state’s regulatory environment, and recommend ways to attract out-of-state business. A plan is due by June 2027.
Washington gas taxes begin automatic annual increases
Washington’s gas tax increased by 2% beginning in July, and for the first time, will now increase automatically every year into the future. This stems from a new law that added 6 cents to the gas tax and sets an automatic 2% increase every year.
This comes as revenue from the fuel tax has been heading downward in recent years. The Office of Financial Management projected transportation revenue to be down $166 million and credited most of the change to the in the current biennium’s forecast to a decline in expected revenue from the fuel tax.