Washington Legislature will not advance interchange bills in 2025

Posted by Joe Adamack on March 19, 2025

As states throughout the country continue introducing and debating bills that would prohibit interchange fees on tips or sales taxes, Washington state lawmakers decided not to advance either of two proposals that would have done so following review by committees in the Senate and House.

SB 5070 was introduced earlier in the session and did not receive a vote in the Senate Labor Committee. The overall topic is brand new to the Washington Legislature, but Washington credit unions effectively brought lawmakers up to speed on how the system worked along with the benefits it provides to consumers and small business owners.

A second bill that was originally not of concern to financial institutions as it only prevented employers from deducting interchange from tips was amended in the budget committee a few weeks ago to include similar language as the problematic Senate bill albeit exclusively for tips. Advocates also worked directly with House leaders to highlight the significant policy issues and all, but guaranteed litigation risks and the bill was held in the House Rules Committee. Since it was not brought forward for a vote by the full House by last Wednesday night — the cutoff deadline for bills to continue moving — that bill is now also considered dead for the session.

GoWest will be working with credit union advocates after session to connect with local lawmakers to provide additional education and background on the topic.

Posted in Advocacy on the Move, Washington Advocacy.