The Association of Washington Business (AWB) has released a comprehensive report titled "Trade in Washington," highlighting the critical role of international trade in the state's economy. The report underscores how Washington's strategic location, robust infrastructure, and diverse industries contribute to its status as a leading trade hub. It emphasizes the importance of maintaining and expanding trade relationships to ensure continued economic growth and competitiveness. 

Washington's economy is deeply intertwined with global markets, with key sectors such as aerospace, agriculture, and technology relying heavily on exports. The report details how trade supports thousands of jobs across the state and contributes significantly to the state's GDP. It also discusses the challenges and opportunities presented by evolving trade policies and global economic shifts.
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In conclusion, the AWB's "Trade in Washington" report serves as a vital resource for understanding the state's economic landscape. It calls for proactive measures to strengthen trade infrastructure, advocate for favorable trade policies, and support businesses in navigating international markets. By doing so, Washington can continue to thrive as a dynamic participant in the global economy. 

​You can read the full report here. 

​The Association of Washington Business (AWB) has released the 2025 Competitiveness Redbook, a comprehensive, data-driven analysis of Washington State's economic standing. This annual publication offers a side-by-side comparison of Washington's performance across 60 key economic indicators relative to other states, providing valuable insights for policymakers, business leaders, and community stakeholders. 

Key Highlights from the 2025 Redbook

• Job Growth: Washington added 77,100 jobs, ranking 11th nationally in both the number of jobs gained and percentage growth. 
• Exports: The state improved its position in exports per capita, moving from fifth to fourth, and in total export value, from eighth to seventh, underscoring its role as a leading exporter. 
• Technology and Innovation: Washington leads the nation in tech sector employment as a share of overall employment and ranks second in overall research and development spending. 
• Energy Costs: The state boasts the lowest electricity rates for residential and industrial customers and the eighth lowest for commercial users. Approximately 76% of Washington's electricity is generated from renewable sources, including hydropower, wind, and solar. 

Challenges Identified

• Business Costs: Washington has the highest workers’ compensation benefits paid and the highest average weekly unemployment insurance payments. Employers contribute nearly half of all state and local taxes, with the percentage increasing from 48.4% to 49.7%. 
• Minimum Wage: As of January 2, 2024, Washington has the second-highest minimum wage in the country. 
• Housing Affordability: Despite a slowdown in price growth, housing affordability remains a significant challenge. Home prices rose 0.6% year over year, and over the past 25 years, prices have grown by 5.9% annually on average. 

The 2025 Competitiveness Redbook serves as a vital resource for understanding Washington's economic landscape, highlighting both its strengths and areas needing attention. Stakeholders are encouraged to utilize this information to inform decisions and strategies aimed at fostering economic growth and competitiveness. 
For more detailed information or to access the full Redbook, visit the AWB's official page.

​Join us for a Regional Advocacy Roundtable bringing together business leaders and local law enforcement for an open, solutions-focused conversation on crime prevention, public safety, and the evolving legal landscape impacting our business community.

This session will provide an important forum to discuss new and proposed legislation that may affect local businesses—particularly in areas such as property crime, retail theft, and public safety. Law enforcement representatives will also provide insight into the current legal tools and enforcement strategies being deployed to address crime, as well as recent trends in criminal activity across the region.

Participants will:
• Hear updates on legislation with potential business impacts.
• Review current crime statistics relevant to the Tri-Cities area and surrounding communities.
• Learn about local enforcement efforts and how laws are being applied to combat retail theft and other criminal activity.
• Explore practical tactics, deterrence tools, and community programs available to help businesses safeguard their property, employees, and customers.

This roundtable is designed to foster collaboration, improve communication between sectors, and empower businesses with the information and tools they need to be proactive partners in promoting a safe and vibrant commercial environment. We encourage business owners, managers, and community stakeholders to attend and share their perspectives.

​A Brief History of the Gas Tax in Washington State — and Why It Still Matters

The gas tax might seem like just a few extra cents per gallon, but in Washington State, it plays a crucial role in how we build and maintain our roads. The story behind the gas tax—and how Washington uses it—is also tied to one of the most important pieces of state law: the 18th Amendment to our state constitution.

The Origin of the Gas Tax in Washington

Washington was an early adopter of the gas tax. The state enacted its first gas tax in 1921, at 1 cent per gallon. The goal was simple: find a way to pay for road construction and maintenance as automobiles became more common. Over the years, that rate steadily increased to keep up with inflation and the growing need for highway infrastructure.

By 2023, Washington’s gas tax stood at 49.4 cents per gallon, making it one of the highest in the nation—ranking third after California and Pennsylvania. Add the federal gas tax (18.4 cents), and drivers in Washington pay nearly 68 cents per gallon in combined fuel taxes.


Here’s a quick look at how Washington stacks up:
State                                         State Gas Tax (Approx.)
California                                       ~58 cents
Pennsylvania                                 ~57 cents
Washington                                    49.4 cents
Oregon                                         ~38 cents
Idaho                                            ~33 cents
National Avg.                                ~30 cents

Washington consistently ranks in the top five for state gas taxes. The high rate reflects the state’s heavy investment in transportation infrastructure—and a legal requirement that restricts how those dollars can be spent.

The 18th Amendment: Protecting Transportation Funds

In 1944, Washington voters approved the 18th Amendment to the state constitution. It says that money collected from gas taxes and vehicle license fees must be used only for highway-related purposes. That means:

• Building and repairing roads and bridges
• Policing highways
• Paying off bonds for road construction

It cannot be used for:

• Public transit (like buses or light rail)
• Bike or pedestrian projects
• General government expenses

This restriction makes Washington’s transportation funding system fairly rigid. Even as many people call for greener, multimodal transportation options, the 18th Amendment locks gas tax revenues into road-focused uses.
Why It Matters for the Future

As cars become more fuel-efficient and electric vehicles (which don’t use gas at all) become more common, gas tax revenues are declining. But because of the 18th Amendment, replacing that revenue with something like a road usage charge (RUC) or mileage tax would require either a constitutional amendment or new legislation crafted to work within existing rules.

Lawmakers and policy advocates are already debating how to modernize transportation funding. But any major changes will need to reckon with the legal and historical legacy of the gas tax and the 18th Amendment.

Want to know more about upcoming proposals to change how transportation is funded in Washington? Stay tuned—2025 might be a turning point.

Accessory Dwelling Units (ADUs), also known as "mother-in-law apartments" or "backyard cottages," are smaller homes built on the same property as the main house. In Washington State's 2025-2026 legislative session, lawmakers are considering several bills to use ADUs to help address housing issues. Here are four key proposals:

House Bill 1010 aims to allow for ADUs in rural areas. This bill proposes permitting detached ADUs outside urban growth areas, which are regions designated for development. If passed, it would enable property owners in rural communities to add ADUs to their land, potentially increasing housing options in less populated areas. 

House Bill 1345 seeks to establish limitations on detached ADUs outside urban growth areas. This bill aims to regulate the development of ADUs in rural regions to ensure that they align with local planning and zoning regulations. The goal is to balance the need for additional housing with the preservation of rural community characteristics. 

Senate Bill 5413 is a companion to HB 1345, introduced in the Senate. It also focuses on setting limitations for detached ADUs outside urban growth areas, aiming to provide more housing flexibility in rural parts of the state while maintaining appropriate land-use planning. 

House Bill 1353 proposes establishing a self-certification program for ADU project permit applications. This means that qualified professionals, such as licensed architects, could certify that ADU plans meet local requirements, potentially speeding up the approval process and reducing costs for homeowners interested in building ADUs.  

If these bills pass, they could lead to more ADUs being built across Washington State. This increase in housing options might help address housing shortages by providing more affordable and flexible living spaces. 

Washington State lawmakers are considering multiple bills to address challenges in the childcare industry, including workforce conditions, accessibility, affordability, and regulatory barriers. Here are a few examples.

•  HB 1212: Requires cities and towns to allow childcare centers in all zones except industrial areas without special approval. Cities must update zoning regulations by 2027 or within two years to remove barriers and expand childcare access.

•  HB 1564: Creates a tax credit for businesses that provide childcare assistance, covering costs under B&O and public utility taxes, starting in 2026. The program will run until 2038, with evaluation measures to determine its impact on increasing employer-supported childcare.

•  HB 1582: Makes it easier to establish childcare centers in existing buildings such as churches by calculating occupancy limits based only on childcare areas. This change reduces costs and regulatory barriers, and encourages more childcare services in community spaces.

•  HB 1648: Extends the deadline for childcare provider training requirements to 2032 and allows experienced workers to meet qualifications through work experience instead of formal education. The bill also mandates accessible, multilingual training and a stakeholder review to improve workforce requirements.

•  SB 5062: Creates a Child Care Workforce Standards Board to set minimum wages and working conditions for childcare workers, with initial standards effective by 2027. Employers must comply with these standards, protect workers from retaliation, and compensate them for training.

•  SB 5310: Increases state subsidy rates for childcare providers starting in 2025, ensuring payments align with the market rates. The bill also mandates a cost estimate model, supports healthcare options for providers, and preserves collective bargaining rights.
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While the final outcome of these bills remains uncertain, the breadth of the proposals demonstrates a strong legislative effort to address Washington’s childcare crisis and improve support for both providers and families.

On February 5, the Association of Washington Business (AWB) hosted its annual Legislative Day & Hill Climb in Olympia, bringing together hundreds of employers to engage directly with state lawmakers. For the second time in two weeks representatives for Tri-City businesses gathered to make our voices heard in Olympia.

The day commenced with a welcome session at the AWB office, setting the stage for a series of face-to-face meetings between business leaders and legislators at the Washington State Capitol Campus. These discussions covered critical topics such as transportation, housing, healthcare, workforce development, tax and fiscal policies, energy, environmental concerns, employment law, manufacturing, and data privacy. 

A highlight of the event was the keynote address delivered by Governor Bob Ferguson during the luncheon at Saint Martin's University's Norman Worthington Conference Center. Governor Ferguson emphasized the importance of responsible budgeting and avoiding revenue assumptions that could lead to future shortfalls. He stated, "I'm determined as governor to make sure we learn from mistakes that we made as a state in making decisions on how we budgeted." 

Throughout the day, participants had the opportunity to meet with key legislators, including State Representative Greg Nance, D-Bainbridge Island, who engaged with AWB members on transportation issues. 

The event concluded with a legislative reception at Anthony's Homeport Olympia, providing a platform for further networking and discussions between business leaders and policymakers. 

Despite a snowy start, the 2025 AWB Legislative Day & Hill Climb was marked by productive dialogues and a shared commitment to addressing the pressing issues facing Washington's business community. 

Last week, the Tri-Cities Legislative Council, Leadership Tri-Cities, and local businesses brought a group of over 80 citizens to Olympia to meet with our legislative representatives. Our goal was to discuss the 2025 legislative priorities and explore ways to successfully advocate for them.

You can review the 2025 Legislative Priorities in our previous blog post.

While in Olympia, the Tri-Cities delegation heard from Senators Boehnke, King, and Dozier. They provided valuable insights into the current political climate, emphasizing that despite Governor Ferguson’s positive outlook, the state budget remains tight, making it challenging to secure funding from the legislature.

We also had the opportunity to hear from two freshman representatives from the 14th Legislative District: Gloria Mendoza and Deb Manjarrez. They shared their experiences as first-year legislators and expressed enthusiasm for representing the Tri-Cities region.

In addition, Representative Connors, the Minority Floor Leader, visited our group. Now, in her second term, she is establishing herself as a strong voice in the legislature, and we are all proud of her accomplishments.

Our agenda included a visit from David Puente, Director of the Washington State Department of Veterans Affairs, whose presentation on the Veterans’ Cemetery generated significant interest and discussion. We also had a surprise visit from Joe Nguyen, the new Director of the Washington State Department of Commerce. His presentation was engaging, and we look forward to collaborating with him in the future.
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The day concluded with a Legislative Reception where we welcomed lawmakers from across the state. The Tri-Cities Legislative Council organizes this trip to Olympia every January. 

The Tri-Cities Legislative Council, comprised of the Pasco Chamber of Commerce, Tri-Cities Hispanic Chamber of Commerce, Tri-City Development Council (TRIDEC), Tri-City Regional Chamber of Commerce, Visit Tri-Cities, and West Richland Chamber of Commerce, recently completed its 2025 Legislative Priorities screening process. These legislative priorities represent inputs solicited from cities, counties, ports, community and not-for-profit organizations, public utilities, businesses, educational institutions, and other members of the community.

In addition to the five priorities outlined below, the Tri-Cities Legislative Council (TCLC) also supports the priorities of the community at large, as we continue working together to enhance regional collaboration for our collective benefit. We support our partners in their priority focuses, including agriculture and conservation, childcare, clean energy and transmission, economic development, education – early learning, K-12 and higher education – hospitality and tourism, housing, law enforcement and public safety, manufacturing and permitting reform, and transportation and infrastructure.

Priority #1: Battelle’s Energy Resources Testbed

The electricity demand in the Pacific Northwest is expected to grow by 30% over the next decade, requiring Washington State to expand power generation and transmission while transitioning to zero-carbon resources. With constrained transmission infrastructure limiting state-wide economic development, solutions such as energy storage, distributed energy resource management, and improved coordination of regional systems can optimize existing assets. Leveraging local resources, such as rooftop solar, can reduce transmission congestion; however, no unified pathway currently exists for grid-scale coordination. Battelle, operator of the Pacific Northwest National Laboratory (PNNL), proposes a $4 million testbed to enhance the integration of distributed energy resources, leveraging PNNL’s state-supported facilities to ensure grid resilience and resource adequacy during this transition.

The Tri-Cities Legislative Council strongly supports $4 million for Battelle to develop a testbed at the Pacific Northwest National Laboratory to advance planning and operation capabilities to utilize distributed energy resources to provide grid services to ensure resource adequacy.

Priority #2: HB 1210 – Amending Targeted Urban Area Exemptions for Clean Energy Transformation Businesses

The Targeted Urban Areas (TUA) program authorized by the legislature in 2022 provides tax exemptions for qualifying manufacturing businesses that create new jobs. Richland established Washington's first TUA in 2023 with ATI Inc., a material company that serves the aerospace and defense industries. This success has spurred additional TUA projects, including Framatome, a clean energy supply chain manufacturer expanding advanced nuclear fuel production in collaboration with washington-based companies such as Terrapower. However, the current TUA construction timeline of up to five years is insufficient for heavily regulated or complex projects such as nuclear and hydrogen energy development. Extending this timeline aligns with Richland’s strategic plan to advance clean energy innovation in the Northwest Advanced Clean Energy Park.

The Tri-Cities Legislative Council strongly supports HB 1210 in amending the Targeted Urban Area (TUA) tax exemption to ensure that complex and highly regulated clean energy projects can access and fully utilize the legislative intent of the original TUA designation.

Priority #3: Tri-Cities Regional Transportation Feasibility Study

The Tri-Cities region has experienced rapid growth, adding 130,000 residents over the past 25 years, and projecting an additional 145,000 residents and 44,000 households by 2040. With 22,000 more vehicles expected on local roadways in the next two decades, the region’s infrastructure is at risk of being overwhelmed, as the average commute times are already increasing. To address this, local governments aim to proactively plan future road and freight infrastructure needs. The Benton-Franklin Council of Governments proposes a study to prioritize large-scale investments to reduce congestion and improve traffic flow. However, transportation funding processes often prioritize immediate crises, necessitating alternative funding to ensure that Tri-Cities remains ahead of rapid growth.

The Tri-Cities Legislative Council strongly supports one-time funding for a feasibility study to identify top priorities for large-scale regional transportation infrastructure investments.

Priority #4: The Mid-Columbia Children’s Museum

The Mid-Columbia Children's Museum (MCCM) is a grassroots initiative to create a children’s museum serving families in Tri-Cities and the surrounding regions of Southeastern Washington and Northeastern Oregon. Its mission is to provide an inclusive, engaging space that promotes STEAM learning, family interaction, and the development of lifelong learners. Since early 2023, the MCCM Founding Task Force has collaborated with the community to plan a museum that reflects local industries and offers hands-on career exploration opportunities. A privately funded feasibility study set for completion in early 2025 will guide decisions on the museum’s size, location, and operational plans. Following this, the project will move into the pre-concept and schematic design phases, which will solidify the vision for the museum and enable a building capital campaign, expediting the timeline to bring this valuable resource to the community.

The Tri-Cities Legislative Council supports $1.3 million for pre-concept and schematic design for the Mid-Columbia Children’s Museum.

Priority #5: Establishing a Tri-Cities Veterans Cemetery

Establishing a veteran cemetery in Tri-Cities is essential to providing a dignified final resting place for 46,000 veterans within a 75-mile radius, as identified by a 2017 feasibility study and the U.S. Department of Veterans Affairs, Currently, veterans in Southeastern Washington must choose between private or civilian cemeteries or travel to veteran cemeteries in Medical Lake or Kent. A Tri-Cities veterans cemetery, estimated to support 400 interments annually, would address this gap. Initial state funding would qualify the project for federal VA funding, covering up to 100% of the construction and ongoing operational costs. While the Governor’s proposed 2025-2027 budget includes $500,000 for pre-design work, it omits funding for property procurement, which is critical to moving the project forward. This cemetery honors veterans’ sacrifices and improves their families’ quality of life by addressing a pressing regional and statewide need.

The Tri-Cities Legislative Council strongly supports robust funding – including for pre-design work and property procurement – for the Washington State Department of Veterans Affairs and its State Veteran Cemetery Program to continue its pursuit of a future Tri-Cities Veterans Cemetery.

You can view the complete Tri-Cities Legislative Council 2025 Legislative Priorities HERE