HB 2038
In CommitteeHouse
Youth behavioral health acc.
Establishing the youth behavioral health account and funding the account through the imposition of a business and occupation additional tax on the operation of social media platforms.
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 creates a new tax on social media platforms operating in Washington to fund youth behavioral health services. It establishes the youth behavioral health account and specifies how the money must be used to support mental health programs for children, teens, and young adults up to age 25.
- Creates the youth behavioral health account in the state treasury to hold funds from a new tax on social media platforms.
- Imposes a 0.4% additional business and occupation (B&O) tax on the gross income of social media platforms operating in Washington, beginning January 1, 2026.
- Defines a social media platform as an internet-based service that allows users to create profiles, interact socially, and share content—including text, photos, audio, or video—but excludes email, online gaming, and purely functional or non-social services.
- Exempts nonprofit organizations that are tax-exempt under federal law (e.g., 501(c)(3) organizations) from the tax.
- Requires all tax revenue to be used for youth behavioral health services, including the telebehavioral health pilot program, the children and youth multisystem care coordinator, and other services outlined in the *Washington Thriving Prenatal through 25 Behavioral Health Strategic Plan*.
- Directs funding to the Health Care Authority, Department of Health, and Governor’s Office to support programs for people from prenatal through age 25.
Who is affected
- Social media platform operators — Social media platforms that generate gross income from operations in Washington will be required to pay an additional 0.4% tax on that income, starting in 2026.
- Youth and young adults (prenatal through age 25) — Children, teens, and young adults up to age 25 will benefit from expanded access to behavioral health services, including telehealth and care coordination, funded by the new tax.
- State government agencies — State agencies—including the Department of Health, Health Care Authority, and Governor’s Office—will receive funding to implement and expand youth behavioral health programs and services.
- Nonprofit social media operators — Nonprofit organizations that operate social media platforms (e.g., educational or research-focused platforms) will be exempt from the tax.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The $150M annual investment in youth behavioral health services—including telebehavioral health pilots and care coordination—will significantly expand access to evidence-based mental health care for children, teens, and young adults up to age 25, especially in underserved communities where such services are currently scarce or unaffordable.
HealthcarePeopleRef: Sec. 2(3)(a)-(c), Sec. 1(2)(a)-(c)By linking the tax to the Surgeon General’s advisory and state survey data on social media’s mental health impacts, the bill creates a direct policy response to a documented public health crisis—potentially reducing depression, anxiety, and suicide risk among youth by expanding timely, accessible care.
Public SafetyPeopleRef: Sec. 1(1)(b)-(e), Sec. 2(1)Funding for the telebehavioral health pilot and multisystem care coordination will improve school-based mental health infrastructure, helping schools identify and support students in crisis earlier—reducing absenteeism, behavioral incidents, and dropout risk.
EducationPeopleRef: Sec. 2(3)(a)-(c)The exemption for 501(c)(3) nonprofits ensures that educational, civic, and research-oriented social platforms (e.g., school-based or community platforms) can continue operating without financial penalty—protecting free expression and civic participation spaces for youth that are not driven by commercial incentives.
Rights & LibertiesPeopleRef: Sec. 2(2), Sec. 1(1)(g)The bill leverages state survey data showing 40–50% of teens report problematic internet use and social anxiety, grounding the tax in local evidence—increasing the likelihood that programs will target the most pressing needs identified by Washington youth themselves.
EducationPeopleRef: Sec. 1(1)(f), Sec. 2(1)
Potential Concerns (5)
The 0.4% B&O tax on social media platforms’ Washington gross income will increase compliance and operational costs for platforms, potentially leading to reduced investment in local infrastructure, fewer local partnerships with Washington-based tech firms, and possible job reductions in tech support, sales, and content moderation roles—especially for mid-sized platforms operating on thin margins.
Business & EmploymentPeopleRef: Sec. 2(1)While the bill aims to improve youth mental health, the effectiveness of the tax-funded programs is uncertain without配套 evaluation mechanisms or accountability measures—e.g., no requirement to measure outcomes, reduce suicide rates, or track program impact—limiting the ability to ensure that $150M annually is used efficiently to improve public safety outcomes like suicide prevention or school violence reduction.
Public SafetyPeopleRef: Sec. 2(1), Sec. 2(3)(a)-(c)The tax revenue is earmarked for specific programs, limiting flexibility for the Health Care Authority and Department of Health to respond to emerging behavioral health crises or reallocate funds during budget shortfalls—potentially causing inefficiencies if program demand shifts faster than legislative appropriations can adapt.
HealthcarePeopleRef: Sec. 2(3)(a)-(c)The tax applies only to for-profit social media platforms, exempting nonprofits and potentially distorting market competition—smaller for-profit platforms may be priced out relative to exempt or larger platforms with deeper margins, reducing consumer choice and innovation in Washington’s digital ecosystem.
Business & EmploymentLean peopleRef: Sec. 2(1), Sec. 2(2)The bill does not require coordination with school districts or educational agencies in program design or implementation, risking duplication of services, misalignment with school-based mental health needs, or underutilization of existing school-based health centers that already serve as critical access points for youth.
EducationLean peopleRef: Sec. 2(3)(a)-(c)
Who Is Most Affected
Youth and young adults (ages 0–25) are the primary intended beneficiaries—especially those with existing mental health challenges, low-income backgrounds, or living in rural/underserved areas. Expanded access to telebehavioral health and care coordination could significantly improve outcomes for this group.
State agencies (HCA, DOH, Governor’s Office) will gain new funding and authority to expand youth behavioral health infrastructure. However, they face implementation pressure without new staffing or regulatory flexibility, potentially limiting effectiveness.
Large social media platforms (e.g., Meta, Snap, TikTok) will absorb the tax cost, likely passing some to users via reduced features or premium tiers. Smaller platforms may struggle to absorb the cost, potentially reducing competition and innovation in Washington’s digital economy.
Nonprofit operators of social platforms (e.g., educational or research-focused platforms) benefit from the exemption, preserving their ability to serve youth without financial penalty—supporting civic and educational missions.
School districts and educators may benefit indirectly through improved student mental health and reduced behavioral incidents, but the bill lacks explicit coordination requirements—so gains are uncertain without additional legislative follow-up.