Washington’s statewide cap on annual residential rent increases will be just shy of 10% next year, down slightly from its current level.

The so-called “big, beautiful bill” is expected to blow a multibillion-dollar hole into the state’s budget, and kick hundreds of thousands of residents off their insurance if they don’t prove they meet new requirements.

Thousands of businesses and charities received bills last fall that appeared to be from the state of Washington, but they were part of a fraud scheme.

Washington’s payouts — known as tort liability — have skyrocketed from $72 million in fiscal year 2018 to more than $281 million last fiscal year.

The bill squeaked through the House by a single vote, with only Republicans in support. Washington state's two Republicans, U.S. Reps. Michael Baumgartner Dan Newhouse, of Sunnyside, both voted for it. Both their districts have the highest proportion of Medicaid enrollees in Washington. 

Washington Gov. Bob Ferguson signed a two-year state budget and a tax package to produce billions of dollars in new revenue.

Effective immediately, the law caps residential rent hikes during a 12-month period at 7% plus inflation, or 10%, whichever is lower. The limit will last 15 years. The bill also restricts manufactured home rent increases to 5% with no expiration date. 

The potential gas tax increase, the first in the state since 2016, raises nearly half of the estimated $3.2 billion the new package is expected to bring in over six years. It would up the state’s levy from 49.4 cents per gallon to 55.4 cents, then lift it by 2% each year. 

The first increase in Washington’s gas tax since 2016 is the centerpiece of a bipartisan transportation funding plan state senators unveiled Monday.