Local Government Tax Resources and Fund Flexibility

State Bills: Washington

Published January 1st, 2026

Detected April 1st, 2026

Summary

The Washington State Legislature passed HB 2442 to provide local governments with new tax resources and fund flexibility. The bill (C 221 L 26) authorizes expanded revenue options and fund management tools for municipalities, counties, and other local entities. Sponsored by 15 legislators with a companion bill SB 6294 in the Senate.

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What changed

HB 2442 enacts provisions granting Washington local governments expanded authority over tax resources and fund management. The bill establishes new mechanisms for revenue generation and fiscal flexibility that localities may utilize. As a passed law (Chapter 221, Laws of 2026), it modifies the existing framework governing local government finances.

Local government fiscal officers and legal counsel should review the enacted provisions to determine applicable tax options and fund management authorities. Implementation timelines and any conditions for utilizing new flexibilities should be identified. Compliance with procedural requirements for invoking new tax authorities will be necessary.

What to do next

Review the enacted ESHB 2442 to identify new tax resource options applicable to your jurisdiction
Assess fund flexibility provisions against current local government financial practices
Update fiscal policies and procedures to incorporate new authorities where beneficial

Source document (simplified)

Home / Bills, meetings, and session / Bills / Bill summary / HB 2442

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HB 2442 - 2025-26

Providing local governments tax resources and fund flexibility. Sponsors: Berg, Duerr, Parshley, Tharinger, Ryu, Zahn, Wylie, Scott, Peterson, Simmons, Ramel, Bergquist, Ormsby, Pollet, Macri Companion bill: SB 6294

Bill status-at-a-glance

As of Wednesday, April 1, 2026 06:56 AM

Current version:

Engrossed substitute - ESHB 2442 (View 1st engrossed)

Current status:

C 221 L 26

Where is it in the process?

Bill status-at-a-glance

As of Wednesday, April 1, 2026 06:56 AM

Current version:

Engrossed substitute - ESHB 2442 (View 1st engrossed)

Current status:

C 221 L 26

Where is it in the process?

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Bill history

View all roll calls on this bill

2026 Regular Session

In the House

Jan 13 First reading, referred to Finance. (View original bill) Jan 20 Public hearing in the House Committee on Finance at 8:00 AM. (Committee materials) Jan 29 Executive action taken in the House Committee on Finance at 1:30 PM. (Committee materials) FIN - Majority; 1st substitute bill be substituted, do pass. (View 1st substitute) (Majority report) Minority; do not pass. (Minority report) Minority; without recommendation. (Minority report) Feb 3 Referred to Appropriations. Feb 5 Public hearing in the House Committee on Appropriations at 10:30 AM. (Committee materials) Feb 7 Executive action taken in the House Committee on Appropriations at 9:00 AM. (Committee materials) APP - Majority; do pass 1st substitute bill proposed by Finance. (Majority report) Minority; do not pass. (Minority report) Minority; without recommendation. (Minority report) Feb 9 Referred to Rules 2 Review. Feb 12 Rules Committee relieved of further consideration. Placed on second reading. Feb 17 1st substitute bill substituted (FIN 26). (View 1st substitute) Floor amendment(s) adopted. Rules suspended. Placed on Third Reading. Third reading, passed; yeas, 53; nays, 44; absent, 0; excused, 1. (View 1st engrossed) (View this roll call)

In the Senate

Feb 19 First reading, referred to Ways & Means. Feb 26 Public hearing in the Senate Committee on Ways & Means at 1:30 PM. (Committee materials) Mar 2 Executive action taken in the Senate Committee on Ways & Means at 10:30 AM. (Committee materials) WM - Majority; do pass with amendment(s). (Majority report) Minority; do not pass. (Minority report) Minority; without recommendation. (Minority report) Passed to Rules Committee for second reading. Mar 3 Placed on second reading by Rules Committee. Mar 5 Committee amendment(s) adopted as amended. Rules suspended. Placed on Third Reading. Third reading, passed; yeas, 26; nays, 22; absent, 0; excused, 1. (View this roll call)

In the House

Mar 11 House concurred in Senate amendments. Passed final passage; yeas, 51; nays, 45; absent, 0; excused, 2. (View this roll call) Mar 12 Speaker signed.

In the Senate

Mar 12 President signed.

Other than legislative action

Mar 12 Delivered to Governor. (View bill as passed legislature) Mar 25 Governor signed. Chapter 221, 2026 Laws. (View session law) Effective date 7/1/2026*.