Dear friends and neighbors, 

With the 2026 legislative session now behind us, I wanted to take a moment to share another update on the work we delivered for our communities. This was a challenging year, shaped by tight budgets and economic uncertainty, but we stayed focused on practical solutions — supporting small businesses, strengthening our economy, and making sure government works better for the people we serve.  

SUPPORTING SMALL BUSINESSES 

This session, the Legislature passed the Millionaires Tax — now signed into law — which takes an important step toward building a more balanced and sustainable tax system for Washington. While the policy will not take effect immediately, it lays the groundwork for long-term stability that benefits both families and businesses alike. 

A key part of this approach is providing real relief for small businesses. The law expands the small business B&O tax credit, meaning roughly 70% of Washington businesses will no longer owe B&O taxes. For many small business owners, that translates into more flexibility to invest in their workforce, grow their operations, and navigate rising costs. 

In our district, only about 137 individuals would pay this tax — impacting less than 1% of residents. That means the vast majority of families and local businesses benefit from a stronger, more balanced system without seeing an increase themselves. 

I also secured funding in the supplemental operating budget to help identify how Washington can better promote economic success and support small businesses statewide. This work will help us take a more thoughtful, data-informed approach to strengthening our business climate and ensuring entrepreneurs have the tools they need to succeed. 

As chair of the Senate Business, Trade & Economic Development Committee, I remain focused on policies that support small businesses, invest in our communities, and build an economy that works for everyone. 

Resources for Small Businesses 

 

The pie chart above shows the main areas of spending for the operating budget. 

OTHER BUDGET WINS 

The supplemental operating budget makes targeted investments to maintain essential services and support communities across our state. While this budget focuses on adjustments to the current two-year plan, it helps ensure key programs remain stable in a time of rising costs and uncertainty. 

This includes funding to sustain Apple Health (Medicaid) and behavioral health services, support long-term care and developmental disability programs, and maintain investments in K-12 education, including special education and the increased costs schools are facing. It also continues support for child care and early learning, food assistance, and housing stability programs that help working families stay on their feet. 

These investments reflect a focus on stability — making sure people can still access health care, students are supported in the classroom, and families have the resources they need to get by and move forward. 

Learn more at fiscal.wa.gov. 

THANK YOU FOR JOINING 

Thank you to everyone who joined our town hall! We are so grateful you took the time to show up, ask questions, and share your thoughts — your input is essential to this work.

If you could not make it, we would still love to hear from you. Please feel free to reach out to our offices anytime, so we can get your questions answered.  

ELECTION YEAR RESTRICTIONS 

Due to election year restrictions, this will be my last newsletter until election results are certified this fall. However, my office is still hard at work serving our district! You can always reach out to us at Claudia.Kauffman@leg.wa.gov or 360-786-7692. 

Thank you for the opportunity to serve. 

Warm regards, 

Sen. Claudia Kauffman