HB 1581
In CommitteeHouse
988 line tax
Increasing the statewide 988 behavioral health crisis response and suicide prevention line tax.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill raises the fee charged to telecommunications customers—such as cell phone, landline, and VoIP users—from 40 cents to 70 cents per line per month beginning January 1, 2026, to fund Washington’s 988 suicide and crisis lifeline and related behavioral health services. The tax applies to all major types of voice service lines and is collected by telecom companies and deposited into a dedicated state account.
- Increases the statewide 988 crisis line tax on telecommunications services—including cell phone lines, landlines, and VoIP services—from 40 cents to 70 cents per line per month beginning January 1, 2026.
- Applies the tax to three types of service lines: radio access lines (cell phones), interconnected VoIP lines, and switched access lines (traditional landlines), with the same tax rate for each type.
- Requires telecommunications companies (including wireless carriers and VoIP providers) to collect and remit the tax to the Washington State Department of Revenue.
- Directs all tax revenue into the statewide 988 behavioral health crisis response and suicide prevention line account, established under RCW 82.86.050, to fund crisis services and suicide prevention efforts.
- Maintains previous tax rates: 24 cents per line (2021–2022) and 40 cents per line (2023–2025), with the new 70-cent rate taking effect in 2026.
Who is affected
- Consumers of telecommunications services — Residents of Washington who use services like cell phone plans, landlines, or VoIP services that are subject to the tax; they will see a small monthly fee added to their bills starting in 2026.
- Telecommunications service providers — Wireless carriers, VoIP providers, and landline companies must collect and remit the tax to the state each month.
- Individuals seeking or needing crisis and mental health support — People in behavioral health crisis or at risk of suicide, who benefit from expanded access to the 988 lifeline and related support services funded by the tax.
- State and local government agencies (e.g., emergency services, health departments) — State and local governments benefit from reduced reliance on emergency rooms and law enforcement for behavioral health crises, thanks to improved 988 services.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The dedicated funding stream significantly expands capacity for the 988 lifeline — including staffing, training, and follow-up care coordination — directly improving access to life-saving behavioral health services for Washingtonians in crisis, especially those without private insurance or stable housing.
HealthcarePeopleRef: Sec. 2(4), RCW 82.86.050By funding a robust crisis response system, the bill reduces reliance on law enforcement and emergency rooms for mental health crises — decreasing costly and potentially harmful police encounters and ER visits, especially for people experiencing homelessness or substance use disorders.
Public SafetyPeopleRef: Sec. 1 (findings), Sec. 2(4)Improved 988 access supports students in crisis by providing alternatives to school-based disciplinary or emergency responses — enabling earlier intervention and reducing school suspensions or arrests, particularly for youth of color and those with disabilities.
EducationPeopleRef: Sec. 1 (findings), Sec. 2(4)Local governments — especially rural counties and jurisdictions with limited mental health infrastructure — benefit from state-funded crisis response capacity, reducing strain on local jails, EMS, and sheriff’s offices during behavioral health emergencies.
Local GovernmentPeopleRef: Sec. 1 (findings), Sec. 2(4)By reducing unnecessary ER transports and police crisis responses, the bill may lower demand for ambulance and law enforcement vehicle use — indirectly easing traffic congestion and reducing public spending on fleet maintenance and fuel.
TransportationLean peopleRef: Sec. 1 (findings), Sec. 2(4)
Potential Concerns (5)
The tax increase adds $36/year ($70 × 12 ÷ 12 = $0.70/month × 12 = $8.40; but per line, and many households have multiple lines — e.g., two adults + a teen = 3 lines = $25.20/year), disproportionately affecting low-income households and households with multiple family members on shared plans, who spend a higher share of income on essential telecom services.
FinancialPeopleRef: Sec. 2(1)(a)(ii)(C), (2)(a)(c), (3)(a)(c)The tax is applied per line, not per household, meaning multi-person households (e.g., roommates, extended families, or multi-generational homes) pay more than their per-capita share, effectively penalizing shared living arrangements — a common housing cost-saving strategy for low- and middle-income Washingtonians.
HousingPeopleRef: Sec. 2(1)(a)(ii)(C), (2)(a)(c), (3)(a)(c)While the bill aims to improve crisis response, the tax increase could reduce usage of telecom services among low-income residents (e.g., cutting back on data plans or dropping landlines), potentially limiting access to emergency services and digital health tools — undermining the very public safety goals the bill seeks to advance.
Public SafetyPeopleRef: Sec. 2(1)(a)(ii)(C), (2)(a)(c), (3)(a)(c)Small telecom resellers and VoIP providers face increased compliance burdens (e.g., tax collection, reporting, remittance), which may strain small businesses with thin margins — especially those serving low-income or rural markets — potentially reducing local service options or increasing prices for consumers.
Business & EmploymentLean peopleRef: Sec. 2(1)(a)(ii)(C), (2)(a)(c), (3)(a)(c)The bill does not include any mechanism to verify that increased funding translates to measurable improvements in crisis outcomes (e.g., reduced suicide rates, faster response times), so the health benefits — while well-intentioned — are not guaranteed and may be modest if implementation lags or capacity constraints persist.
HealthcareRef: Sec. 2(4), RCW 82.86.050
Who Is Most Affected
Low- and moderate-income households — especially those with multiple lines (e.g., teens, working adults, seniors on fixed incomes) — will pay more for essential telecom services, which may strain household budgets and reduce discretionary spending. However, they are the primary beneficiaries of improved crisis services, especially those at risk of suicide or in behavioral health crisis.
People in active crisis or at high risk of suicide gain direct access to faster, more reliable support via the 988 lifeline. The tax increase is modest relative to the potential life-saving benefit, but access may be limited if the system is under-resourced or if stigma prevents use.
Telecom providers (especially large carriers) face minimal cost increases (automated tax collection is low-effort), but small resellers and VoIP providers may incur disproportionate compliance costs. The tax is passed through to consumers, so providers’ revenue is largely unaffected.
State and local agencies (e.g., emergency management, public health, corrections) benefit from reduced crisis-related calls to 911 and law enforcement, freeing resources for other priorities. However, success depends on whether 988 can actually absorb demand and provide timely follow-up care.
Families and caregivers of people with mental illness or substance use disorders may see reduced stress and financial burden from avoided ER visits or incarceration, but may also bear more informal caregiving if community services remain underfunded.