Ferguson Signs Democrats’ 2025 Legislative Wishlist Into Law: Higher Taxes, Fewer Rights, and What You Need to Know

When Bob Ferguson campaigned for governor and throughout the recently-completed legislative session, he positioned himself as a moderate Democrat who would govern pragmatically, resisting the tax-and-spend impulses of his party’s left wing. Yet, just five months into his administration, Ferguson has abandoned that promise, signing into law a series of bills that mark the largest tax increase in state history, expand government overreach, and prioritize progressive ideology over the needs of everyday Washingtonians.

These new laws will have serious consequences for Washingtonians. From a flood of new taxes and fees, to rolling back parental rights in schools, to giving more power to labor unions , and funneling housing aid through race-based programs, Governor Ferguson has made his priorities clear. He promised moderation but delivered ideology—and it’s everyday families who will pay the price.

A Historic Tax Hike: Burdening Washingtonians with No End in Sight

On May 21, the Governor signed the 2025-27 biennial budget (Senate Bill 5167), totaling $78 billion and nearly $12.5 billion in new taxes to address the budget shortfall. Passed every two years, the biennial budget outlines how Washington funds state programs and services. This year’s package not only raises state taxes—it also authorizes local governments to increase their own tax collections. Washingtonians will see billions in new taxes and fees, amounting to $4,000 per household. Below are some of the most notable tax hikes and fees that Governor Ferguson signed into law.

• House Bill 2049 (Property Tax Hikes): This law raises the cap on how much some, urban school districts can collect through enrichment levies, which are funded by local property taxes. Previously, districts were limited to a 1% increase above inflation. Now, that cap is lifted at the expense of rural school districts to allow an additional $500 per student above inflation in the first year (2026), followed by annual increases of 3.3% above inflation from 2027 to 2030. This bill passed the House and Senate without any Republican votes.
• Senate Bill 5801 (Gas Tax Increase): Raises the state gas tax by 6 cents per gallon to fund transportation projects. Washington already has the third-highest gas prices in the nation, and this hike will only make things worse for working families. This bill passed the House with zero Republican support, and passed the Senate with only a handful of Republicans voting in favor.
• House Bill 2081 (Business and Occupation Tax Surcharge): This law raises the Business and Occupation (B&O) tax rate for certain businesses from 0.03% to 0.35% of gross income, and adds a new 0.5% surcharge on businesses with annual incomes over $250 million. The surcharge is set is expected to cost businesses $1.7 billion annually. This bill passed the House and Senate without any Republican votes.
• Senate Bill 5813 (Capital Gains and Estate Tax Increases): This law increases the capital gains income tax on long-term capital assets such as stocks and bonds valued over $1 million from 7% to 9.9%, and raises the estate tax rate for larger estates from 20% to 35%. Combined, this makes Washington’s “death tax” the most punitive in the nation and creates major wealth flight risks. This bill passed the House and Senate without any Republican votes.
• Senate Bill 5814 (Sales Tax Expansion): This law expands the state sales tax to include digital services such as IT services, custom website development, software, security, and advertising. This bill passed the House and Senate without any Republican votes.
• Senate Bill 5794 (Tax Preferences Adjustment): Eliminates tax breaks used by more than 15,000 Washingtonians, including the home energy assistance credit and preferential tax rates for prescription drug resellers and dentistry prepayments. While pitched as closing loopholes, this law hits essential services—raising costs for basic healthcare, energy, and medication access—and is expected to generate $148.5 million in new revenue from those least able to afford it. This bill passed the House and Senate without any Republican votes.
• House Bill 2077 (Tesla Tax): This law introduces a tax on the sale of emission credits between automakers, dubbed the “Tesla tax” because Tesla is the only automaker that has amassed enough emission credits to sell to other automotive manufacturers in Washington. It is projected to generate $54.5 million for the state’s operating budget over the next two years. This bill passed the House and Senate without any Republican votes.

None of these tax increases were necessary—an alternative budget proposal from the Senate Republicans offered a balanced budget without a single tax hike and even added funding for education. This proposal was voted on in the Senate but no Democrat voted for it.

Ferguson positioned himself  as a moderate Democrat who would wrangle in his progressive tax-and-spend colleagues. Shortly after the election he said, “Washingtonians expect that we will increase revenue as a last resort. I will not contemplate additional revenue options until we have exhausted efforts to improve efficiency.”

But how seriously did he try? His idea of “efficiency” was vetoing just $25 million (mostly minor studies and grants) out of a $78 billion budget. That’s 0.03%—a rounding error. Does that sound like “exhausted efforts” to you? Washingtonians were promised restraint and reform. What they got instead was the largest tax hike in state history.

Ferguson Greenlights Radical Agenda

Fiscally, he has proven to be no moderate at all, but what about the other issues? Backed by a Democrat-controlled legislature, he signed off on a wave of radical legislation that goes far beyond taxes. Let’s take a closer look at the legislation Ferguson signed into law.

• House Bill 1296 (Weakens “Parents’ Bill of Rights”): Just last year, citizens fought for the “Parents’ Bill of Rights” to keep them informed of important issues at school, and they won, but this new law strips away those protections—blocking parental access to medical records, including mental health counseling, and allows schools to delay notifying parents of criminal incidents involving their child. Lawmakers didn’t just revise the law—they dismantled key rights families fought to establish. This bill passed the House and Senate without any Republican votes.
• House Bill 1217 (Rent Control): Caps residential rent increases at 7% plus inflation—or 10%, whichever is lower—within a 12-month period. Despite being sold as a tenant protection, the policy ignores supply-and-demand realities and discourages new housing development. Everywhere this has been tried before has experienced low supply and increased This bill passed the House and Senate without any Republican votes.
• House Bill 1131 (Clemency for Undocumented Immigrants): Fast-tracks clemency and pardons to undocumented immigrants faced with deportation, including those with criminal records. This bill passed the House with only one Republican vote, and the Senate with no Republican support.
• House Bill 1531 (Vaccine Information Mandate): A law demanding that local jurisdictions must disseminate state-approved information regarding vaccines to ensure there is no vaccine dissent. This bill passed the House with zero Republican votes and the Senate with only one.
• House Bill 1163 (Firearm Purchase Permit Fee): Introduces a new permit system for folks who want to buy guns, and pay a fee. Republicans argue this law infringes on Second Amendment rights by imposing a financial barrier to exercising a constitutional right. This bill passed the House and Senate without any Republican votes.
• House Bill 1696 (Race-Based Housing Program): Provides $120,000 forgivable loans for first-time homebuyers, but only for Black residents, excluding all other races while requiring them to fund the program through taxes. This bill passed the House and Senate without any Republican votes.
• Senate Bill 5041 (Subsidizing Union Strikes): Allocates funds to provide unemployment insurance to striking workers, effectively subsidizing labor disruptions at taxpayers’ expense. This bill passed the House and Senate without any Republican votes.
• House Bill 2015 (Police Funding VS Social Services): Originally written to allocate $100 million to help hire more police officers, but was amended to include social services as well. Municipalities can now request one-time grants with no intention of improving police departments. This bill passed the House and Senate with only six Republican lawmakers supporting the bill.
• House Bill 2234 (Cuts to Vulnerable Groups): This law reduces child support for single moms on temporary assistance, and reduces support for the aged, blind, and disabled. This bill passed the House with only three Republican votes, and the Senate with zero.
• Senate Bill 5284 (Costly Recycling Overhaul): Overhauls Washington’s recycling system by requiring producers of packaging and related products to fund and manage a new statewide recycling program. While supporters claim it will improve sustainability, the cost of compliance will fall on businesses—and ultimately consumers, expected to increase grocery prices by 20–30%. This bill passed the House and Senate without any Republican votes.

These laws are all radically progressive—and all signed by Governor Ferguson. In just five months, Governor Ferguson has veered sharply away from the moderate leadership he promised, and instead of reigning in his caucus, he’s handed them the keys. The legislation he’s signed reflects a deliberate embrace of a progressive agenda that expands government control, weakens parental rights, and burdens Washingtonians with higher costs and taxes.

Voters didn’t sign up for this bait-and-switch. If this is the future Ferguson envisions for Washington, it’s time for citizens to speak up, push back, and demand leadership that serves the people—not the party.

Photo: Joe Mabel