POLITICS

Olympia: Governor Proposes Millionaire Tax and Infrastructure Funding

PUBLISHED Jan 12, 2026, 11:28 AM ET

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Olympia: Governor Proposes Millionaire Tax and Infrastructure Funding

Media Bias Meter

Sources: 6

Left 33%

Center 50%

Right 17%

Sources: 6

OLYMPIA — Governor Bob Ferguson on Jan. 13, 2026 delivered his State of the State address, urging lawmakers to adopt a 9.9% tax on income above $1 million and to invest in housing, roads and ferries. He also sought bipartisan cooperation. He outlined a response to December 2025 flooding, proposed a nearly $245 million housing supplemental, and detailed using half the rainy-day fund to address a $2.3 billion shortfall alongside cuts to grants and higher-education budgets. Ferguson warned revenue from the proposed millionaire tax would not begin until 2029 and anticipated legal challenges. Based on 6 articles reviewed and supporting research.

By Najma A. | JQJO News

Timeline of Events

Washington historically lacks a state personal income tax.
December 2025 — Historic flooding affects Washington communities.
Jan. 13, 2026 — Gov. Ferguson delivers State of the State proposing a millionaire tax.
Jan. 2026 — Ferguson outlines a $2.3 billion budget shortfall and proposed cuts.
Officials estimate millionaire tax revenue earliest in 2029 and foresee legal challenges.

Media Bias

Articles Published:: 6
Right Leaning:: 1
Left Leaning:: 2
Neutral:: 3
Distribution:: Left 33%, Center 50%, Right 17%

Who Benefited

High-income taxpayers would bear the direct new levy while contractors, construction trades, ferry and road vendors, and residents gaining affordable housing or improved infrastructure would likely receive funded projects and contracts from the proposed investments.

Who Impacted

Lower- and middle-income Washington residents could face service reductions from proposed budget cuts, while universities and social-service grant recipients may see reduced funding to cover the $2.3 billion shortfall.