Governor Ferguson also recently signed supplemental budgets (operating, capital, and transportation) and other 2026 session bills, with some targeted partial vetoes (e.g., on minor funding items like a family reading program). The session focused heavily on addressing a projected budget shortfall.

Millionaires’ Tax (Senate Bill 6346): Governor Bob Ferguson signed the new 9.9% tax on earnings over $1 million. Opponents filed a lawsuit shortly after to block it, arguing it violates the state constitution. Collections (if upheld) wouldn’t start until 2029.