Rep. Walsh prefiles bill that would send climate-tax dollars back to schools

Published 1:30 am Tuesday, January 6, 2026

Rep. Jim Walsh, R-Aberdeen, says Washington lawmakers need to face a fundamental reality: state climate policies have driven up school utility bills, and districts are being left to absorb the costs.

House Bill 2234 would direct funds from the Climate Commitment Act back to public schools to help cover higher utility expenses, rather than forcing districts to cut elsewhere or divert classroom dollars.

“Teachers and principals from the 19th District and other parts of Washington have asked me to ask the Legislature to do something about the bad policies that have driven up the cost of keeping public schools open and running,” Walsh said. “Their utility bills have gone way up because of the Inslee-Ferguson Climate Commitment Act.”

Walsh said the problem has been exacerbated by changes to state budget priorities that have reduced school support for overhead expenses, including materials, supplies and operating costs (MSOC).

“And the money they get from Olympia to cover overhead costs — in the business, called ‘MSOC’ costs — has been cut because of Gov. Ferguson’s bad budget schemes,” Walsh said.

HB 2234 makes two changes to state law. First, it adds school utility cost relief as an approved use of the Climate Commitment Account. That account collects revenue from the Climate Commitment Act’s carbon auctions.

Second, the bill establishes a new, dedicated MSOC allocation for school districts, effective in the 2026–27 school year. Districts would receive an additional $95 per full-time equivalent student, which could be used only to offset higher utility costs associated with the Climate Commitment Act and related regulations.

“House Bill 2234 solves this financial crunch by directing some Climate Commitment Act money back to our public schools in the form of additional MSOC payments to offset those higher utility bills,” Walsh explained.

Walsh said the bill is about priorities and accountability.

“This is a much better use of CCA taxes than building bike lanes or paying consultants to lecture people about climate catastrophism,” he said.

Walsh said he continues to oppose the Climate Commitment Act, but that lawmakers still have a responsibility to address its impacts on schools and taxpayers honestly.

“Ultimately, I’d like to repeal the Climate Commitment Act entirely,” Walsh said. “But as long as it stays in place, Olympia should at least be more responsible and accountable for how it spends the billions of dollars in taxes that CCA inflicts on working people — and on school districts.”

Walsh described HB 2234 as a limited but necessary step.

“HB 2234 is a modest step in that more responsible and more accountable direction,” he said.

The 2026 legislative session begins on Jan. 12