Transcript Highlights:

• And then the second one, labeled C, is before you.
• You have a proposed substitute before you, labeled D, offered by Senator Leas.
• You have two proposed substitutes before you and one amendment.
• You have two proposed substitutes before you and one amendment.
• You can share. Thank you. Are you guys ready? So, we have Senate Bill 6124 before us.

Summary: The Senate Environment, Energy, and Technology Committee took executive action on 11 bills. It advanced SB 624 on an Appliance Affordability Index study with an amendment excluding consumer electronics, and SB 6284 on artificial intelligence systems with a proposed substitute adding definitions, developer requirements, exemptions for some entities, and clarifying enforcement. The committee also moved forward SB 5609 on cultural resource protection under SEPA after rejecting an amendment to the proposed substitute, and SB 6172 on coal plant treatment under cap-and-invest after adopting an amendment related to emergency federal orders. Several energy and climate bills were also approved, including SB 6246 on emissions-intensive trade-exposed facilities, SB 5932 on alternative jet fuel production, SB 6269 on the definition of motor fuel, and SB 6223 on community-scaled weatherization projects. On SB 5975 concerning lead in cookware, the committee rejected one proposed substitute and adopted another that bans intentionally added lead in cookware beginning in 2027 and directs future regulation through the Safer Products program. The committee then considered SB 5466 on electric transmission reliability and capacity, taking up multiple amendments to a proposed second substitute. Amendments addressing wildfire risk, corridor identification, landowner consultation, eminent domain, and wildfire liability were all rejected, and the bill was advanced on a due pass recommendation. In each case, the committee’s final action was to pass the bills or substitutes subject to signatures, with several measures referred onward to Ways and Means or Rules as noted.

Transcript Highlights:

• The second one, labeled C, is before you.
• You have a proposed substitute before you labeled D, offered by Senator Lees.
• You have two proposed substitutes before you and one amendment.
• You have two proposed substitutes before you and one amendment.
• You can share. Thank you. Are you guys ready? So, we have Senate Bill 6124 before us.

Bills: SB6124 , SB6171 , SB6284 , SB5609 , SB6172 , SB6246 , SB5932 , SB6269 , SB6223 , SB5975

Committee: Senate Environment, Energy & Technology

Keywords: appliance affordability, cost index, energy efficiency, consumer protection, Washington state, energy facilities, large energy consumers, regulation, environment, sustainability, artificial intelligence, data privacy, technological impacts, cultural resources, land use, environmental policy, exemptions, state laws, Washington climate policy, greenhouse gas

Transcript Highlights:

• So, before a program, you define what that success is, and then you make sure that there are mechanisms
• So, I mean, I can definitely dig in and show you and provide you with more information in our analysis
• Like you and I talked before, I didn't even know y'all existed, and that's what we want to make sure
• One before you exit, I want you to know your words are passionate and I feel it to my core.
• Thank you for your flexibility today. Thank you. Call next bill.

Bills: SB197 , HB140 , SB214 , HB214 , HB147 , HB270 , SB73

Committee: House Fiscal Responsibility

Keywords: business regulation, nonprofit entities, electronic filing, merger agreements, limited liability companies, partnerships, property transfer, termination fees, HB140, private sewer systems, wastewater utilities, Public Service Commission, PSC jurisdiction, utility regulation, rate setting, rate consolidation, affiliated systems, common ownership, private utilities, sewer rates

Transcript Highlights:

• But because you were appointed before the deadline, we need to either take action on your nomination
• But because you were<00:15:38.560><c> appointed</c><00:15:38.959><c> before</c><00:15:39.279><c> the<
• I'm going to limit you to one minute. You come before...
• Thank you, council member. Okay, last call. Anybody else? Seeing none. All right.
• Uh, Miss Duman, I guess we're supposed to call you Honey Girl, but hello, Benedict Honey Girl Dum.

Summary: The Committee on Hawaiian Affairs heard multiple gubernatorial nominations to island burial councils, with testimony focused on the importance of filling vacancies so the councils can reach quorum and fulfill their kuleana to protect iwi kūpuna and burial sites. For GM 674, Kavuna Khalipi was introduced as OHA’s nominee for the Molokaʻi burial council, with OHA, SHPD, and several community members testifying in support and describing her cultural grounding, community service, and experience in mālama ʻāina. Testifiers also stressed that burial councils are essential for protecting ancestral remains and that prolonged vacancies have left sacred sites vulnerable. Khalipi herself said she was honored to serve but expressed concern about accepting the appointment without quorum, saying she did not want to waste a term if the council could not function effectively. The chair explained the Senate advice-and-consent process and the consequences of inaction, and after discussion Khalipi asked to pull her nomination from the committee. The chair then deferred decision-making on GM 674 until April 10 at 1 p.m. to clarify the process and avoid unintended rejection. The committee then heard testimony on GM 676, Dane Maxwell for the Maui and Lānaʻi burial council, GM 677, Noani Parisa, GM 678, Caroline Hartman, and GM 679, Benedict Duman. Supporters, including SHPD and OHA, highlighted each nominee’s cultural knowledge, preservation work, genealogy, and experience with burial or historic preservation matters. Testimony repeatedly linked the nominations to the need for functioning burial councils, especially in light of the 2023 Maui fires and long-standing vacancies. No votes were taken during the portion of the meeting provided; the chair indicated votes would be taken at the end of the agenda.

Transcript Highlights:

• And the question before you is whether making this administrative switch will get you there.
• Hoover, you can call it accountability, you can call it blame, but you can point your finger at somebody
• And so I'm grateful for the opportunity to be before you all today.
• And I said this to you before, so it's not a surprise.
• And I said this to you before, so it's not surprised. and I said this to you before, so it's not surprised

Committee: House Education

Transcript Highlights:

• Regardless of how you participate, you must be recognized by the chair or vice chair before speaking.
• Folks who are called up to testify will be called by Vice Chair Salahoodine, and if you are online, you'll
• Turning to the bill before you, Senate Bill 6258 authorizes the Commission to conduct rulemaking to allow
• Thank you. Thank you. Thank you. Clerk will call the roll. We'll call the roll. Mr.
• I don't see any other remarks, or do you want to pull up the roll call, please?

Summary: The House Postsecondary Education & Workforce Committee held a public hearing on Senate Bill 6258, which would authorize the Washington Medical Commission to adopt rules allowing physicians and certain other licensees to voluntarily relinquish their licenses outside of a disciplinary process. Staff and the bill sponsor explained that the current system only allows relinquishment through a disciplinary or quasi-disciplinary path, which can trigger reporting to national databases even when there is no misconduct. Testimony from the Medical Commission and the Washington Physicians Health Program supported the bill as a non-disciplinary, permanent, and more dignified way for providers to exit practice while preserving patient safety by excluding those under investigation or discipline. The chair said the committee would executive the bill the next day and asked that amendments be submitted by 6 p.m. that day. The committee then held a work session on part-time/adjunct faculty in the community and technical college system. State Board of Community and Technical Colleges staff described the system’s 34 colleges, the role of local bargaining, and the differences in duties and pay between full-time and part-time faculty. They noted that adjunct pay has historically lagged and cited a 2024 report estimating it would cost about $75.1 million to raise average adjunct compensation to 85% of full-time faculty pay. American Federation of Teachers Washington representatives and contingent faculty testified in support of HB 2538, arguing that contingent faculty are underpaid, often lack stable employment and compensation for work outside class time, and that higher pay would improve retention, student support, and equity. Members asked about bargaining structures, health benefits, workload, and comparisons to other faculty roles. In executive session, the committee considered Substitute Senate Bill 5931, which makes administrative changes to the Workforce Education, Investment, Accountability, and Oversight Board, including removing a public dashboard requirement and adjusting election timing. The bill passed 14-1 and was reported out with a do-pass recommendation. The committee also approved Senate Bill 5963, which automatically makes Passport to Careers participants income-eligible for the Washington College Grant and aligns need calculations with the federal formula; it also directs Passport funds into the state financial aid account. That bill passed unanimously, 15-0, and was likewise reported out with a do-pass recommendation.

Transcript Highlights:

• Regardless of how you participate, you must be recognized by the Chair or Vice Chair before speaking.
• Turning to the bill before you, Senate Bill 6258...
• Turning to the bill before you, Senate Bill 6258, ...
• Thank you. Thank you. Thank you. Clerk will call the roll. We'll call the roll. Mr.
• Or do you want to pull up the roll call, please?

Bills: SB6258 , SB5963

Committee: House Postsecondary Education & Workforce

Keywords: Washington Medical Commission, medical license, license relinquishment, voluntary surrender, nondisciplinary pathway, physician regulation, health professional licensing, disciplinary database, National Practitioner Data Bank, license renewal, license reinstatement, medical board, professional discipline, credential surrender, healthcare regulation, SB 5963, passport to careers, Washington College Grant, financial aid, higher education

Transcript Highlights:

• Thank you so much. Thank you. You're welcome.
• Secretary, I regret to inform you that had it not been for that one support call, you would have beat
• I'll let you two handle that later, okay? Thank you so much.
• Thank you. Then I'll open it up for opposition testimony. Thank you. Thank you.
• Thank you so much. Then I will welcome. Chair Shaibaugh, I do have a question for you. Thank you.

Bills: AB58 , AB275 , SB46 , SB457 , SB465 , AB320 , AB344 , AB381 , AB541

Committee: Assembly Judiciary

Transcript Highlights:

• </c> happen you have to be thoughtful you happen you have to be thoughtful you have<00:04:13.599><c>
• </c><00:12:20.199><c> madam</c> you um Senator housea thank you madam you um Senator housea thank you
• Thank you for your time. Thank you very much. Mr. Martin, thank you.
• </c> thank you for your time uh thank you thank you for your time uh thank you very<00:42:22.040><c>
• Thank you very much. Mr. Haynes, thank you. Thank you, Madam Chair.

Committee: Senate Taxes

Transcript Highlights:

• Chair, Vice Chair, Ranking Member, Members, it's a pleasure to be before you to present C.S. for House
• Thank you, Chair. Thank you, Representative.
• You wish to appear? Come on. Thank you, Chair. Thank you, committee.
• Can you bring it in? Yes, I can. Thank you.
• doing educators, but you continuously carve out what we call public safety.

Transcript Highlights:

• that you want to make at this time before we move to the vote.
• Before you go to the vote... So I'll name your name. Oh, Sarah, me. Yes, wait.
• Before you go to vote, I just want to echo your remarks and thank the staff.
• Thank you. Thank you, Rev. Any other comments before we move to adjourn? Yes, Ernie Gates.
• Thank you very much, all of you. Thank you so much. Any other comments before we move to the drug?

Summary: The special commission on xylazine held its fifth and final public meeting to review and finalize its report before submission to the House and Senate clerks. Chair Mindy Domb opened the meeting, noted Senator John Velis was absent due to National Guard deployment, and the commission approved the minutes from the February 9 meeting. Staff then walked commissioners through the final draft, focusing on edits since the prior review and on appendices that would be completed after the meeting. Commissioners discussed several substantive wording changes, including clarifying that xylazine is an active adulterant rather than a bulking agent, replacing “non-clinician” with “non-clinical staff,” removing or softening references to “hotspots,” and refining language about medical consequences and financial costs of delayed wound care. They also discussed adding or strengthening references to harm reduction measures, drug checking, overdose prevention centers, oxygenation, airway positioning, naloxone use, and language access considerations in educational materials. The report’s main findings and recommendations centered on best practices for oversight and enforcement, outreach and treatment, emergency response, and education/training for first responders, medical providers, non-clinical staff, people who use drugs, and people in recovery. Commissioners emphasized the need for timely, accessible, and tailored training; better data collection and public health surveillance; stronger legal protections for drug checking; and coordination among public health, public safety, and legal stakeholders to address xylazine and emerging adulterants. There was also discussion of a recommendation for the Attorney General to compile guidance for law enforcement in consultation with experts, though staff clarified that this would not be the sole function of the broader public body envisioned in the report. After reviewing the final language, the commission voted unanimously among members present to approve the final report, with one abstention on the earlier minutes vote and absent members to submit written votes within 24 hours for inclusion in Appendix A. Chair Domb then read a letter from Senator Velis expressing support for the report and its recommendations despite his inability to vote in person. Commissioners offered closing remarks thanking staff and one another for the collaborative work, and the meeting adjourned at 11:11 a.m., with staff to submit the report to the clerks and post it online.

Transcript Highlights:

• Digging a little deeper into our program grants, we had $300,000 from you.
• Digging a little deeper into our program grants, we had $300,000 from you.
• But yes, lots of fear. the call how do you provide service to the call how do you provide service to
• I want to thank you for your invitation today to appear before you.
• uh today uh to appear before invitation uh today uh to appear before you<01:34:34.760><c> uh</c><01:

Bills: HF711 , HF653

Committee: House Agriculture Finance and Policy

Transcript Highlights:

• You had to do a classroom portion before you could get your permit and do any driving behind the wheel
• And before we do that, Representative Green, you have a couple guests.
• I met with Chair Kisha before the meeting. So, thank you.
• I met with Chair Kisha before the meeting. So, thank you.
• I met with Chair Kisha before the meeting. So, thank you.

Bills: HF3650 , HF1791 , HF3489 , HF4231 , HF4232 , HF4269 , HF4270 , HF3490

Committee: House Education Finance

Transcript Highlights:

• Thank you.
• Like, do you have a, you know, do you actually have a storefront?
• Thank you. Anybody else? Great. Thank you for coming. Thank you.
• Thank you. Anybody else? Great. Thank you for coming. Thank you.
• Thank you. you. you. Anybody<00:28:53.560><c> else?</c> Anybody else? Anybody else?

Summary: House Fraud Prevention and State Agency Oversight Committee Chair Kristen Robbins opened the meeting by explaining that the committee’s majority report had been released after the minority declined to file a minority report, though the minority later issued a statement. She said the report reflects two years of work aimed at exposing fraud, strengthening internal controls, and creating a whistleblower portal, mnfraud.com, which will remain open during the interim to receive and review tips. Robbins and several Republican members described the report as documenting how fraud in Minnesota began with earlier CCAP-related schemes and then expanded into Feeding Our Future and other programs, including housing stabilization, autism services, sober homes, adult day care, assisted living, non-emergency medical transportation, and interpretive services. They argued that fraud was enabled by weak oversight, a culture of inaction, and retaliation against whistleblowers, and said the report includes findings and recommendations for future reforms. Members also highlighted bipartisan bills already passed to strengthen whistleblower protections, internal controls, and fraud reporting. Representative Pam Altendorf and others praised the report and said it exposed widespread misuse of public funds, citing housing stabilization and autism services as examples of programs with rapidly growing costs and weak oversight. Representative Isaac Schultz said the committee had uncovered “industrial-scale” fraud and that the state had failed to hold agencies accountable. He and Robbins said the new Office of Inspector General, created by legislation passed this session and set to begin in January, will have broad authority to investigate public dollars and, later, police powers; they also noted a salary-setting provision for the office would be added to a state government bill. The members said the next governor will need to change the culture of state agencies and enforce accountability.

Transcript Highlights:

• For members attending by conference call, I ask that you place your phones on mute when you are not speaking
• You are recognized. Thank you, Mr. Chairman.
• And you can see in most policy areas we're either very close to where we were before or less than we
• Thank you, Mr. Chair. Thank you, Mr.
• You are recognized. Thank you, Mr. Chair.

Summary: The Legislative Budget Commission met with a quorum present to hear the constitutionally required Long-Range Financial Outlook and consider a series of budget amendments. Amy Baker of the Office of Economic and Demographic Research presented the outlook, describing Florida’s continued population growth, strong wage growth, an aging population, housing-market softening, and low consumer sentiment. She said the general revenue forecast was largely unchanged from March, but the state’s funds available had improved because of legislative actions in 2025 that increased the balance forward. She also noted strong reserves, a projected current-year Medicaid deficit of about $125 million, and a three-year outlook that remains positive in the first year but turns negative in years two and three. She highlighted the risk of co-occurring catastrophic events, using a normalized Great Miami Hurricane scenario to illustrate potential state losses. The outlook was adopted after brief comments from House and Senate members emphasizing fiscal restraint and efficiency. The commission then approved multiple budget amendments, mostly without objection. The Agency for Health Care Administration received amendments to realign funding for Florida KidCare based on estimating conference results, to provide $85 million in budget authority for disproportionate share hospital payments, and to adjust Medicaid and long-term care appropriations, including placing surplus funds into reserve. The Department of Health received $6.3 million in additional authority for newborn screening. The Department of Corrections and the Department of Management Services each received $2.2 million in Private Inmate Welfare Trust Fund authority for repair invoices and pending projects. The Department of State was authorized to release $2.5 million in nonrecurring general revenue for cultural and museum grants and America 250 commemorative grants. The Department of Transportation received approval for a project roll-forward and for work program changes, including advancing I-95 widening in Duval County and the I-4 corridor in Polk and Osceola counties. The meeting ended with a motion to adjourn.

Transcript Highlights:

• Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.
• While you were speaking, we achieved a quorum, so will you please call the roll. Senators Laird?
• You know, back in, I believe it was 1996, we had what was called the Welfare to Work Program.
• If you turn the clock back before the submission... ...to our communities.
• But then will you get a call from our friends from the first panel at financing?

Summary: The Senate Budget and Fiscal Review Subcommittee held an oversight hearing on the impacts of H.R. 1 on California’s safety net, focusing on Medi-Cal and CalFresh. The chair and vice chair framed the issue as a major federal disruption that would reduce benefits and shift costs to the state, counties, hospitals, and other local systems. The first panel included the Legislative Analyst’s Office, the Department of Finance, the UC Berkeley Labor Center, and the Food Research and Action Center, each describing projected enrollment losses, higher state and county costs, and implementation challenges. The LAO outlined H.R. 1’s main changes: new and expanded work requirements, more frequent eligibility redeterminations, restrictions on certain non-citizen eligibility, and financing changes affecting provider taxes and federal matching rates. The LAO estimated that 1 to 2 million people could be disenrolled from Medi-Cal and more than 600,000 could lose CalFresh, with additional costs from reduced federal support and possible state and county administrative burdens. The Department of Finance said the Governor’s budget includes about $1.4 billion General Fund in 2026-27 to respond to H.R. 1, with larger out-year reductions in federal funds and projected Medi-Cal caseload losses of up to 2 million by 2029-30. The UC Berkeley Labor Center projected up to 3 million Californians could lose full-scope Medi-Cal by 2028 when H.R. 1 is combined with state budget changes, while noting the state could choose policies that would reduce some of those losses. The Food Research and Action Center warned that CalFresh cuts and time limits would increase hunger, worsen health outcomes, and strain local economies and emergency systems. Members questioned the witnesses about procedural disenrollments, regional variation, the overall growth in Medi-Cal spending, the future of the MCO tax, the CalFresh error rate, and the downstream effects on hospitals and county indigent care. Several senators argued that the federal law was driven by tax cuts for high-income earners and would disproportionately harm low-income Californians, immigrants, and communities of color. Administration witnesses said some impacts are still being analyzed, that counties and departments are working on implementation, and that the Legislature may need to use statute, reporting, and oversight tools as federal guidance develops. No votes or formal actions were taken during this portion of the hearing.

Transcript Highlights:

• Thank you.
• I didn't realize—I know you called me, and I didn't realize. I rushed it.
• Well, when I walked in the door, you were—I thought you were taking attendance, but you were doing a
• </c><00:03:55.720><c> were</c> the door you were I thought you were the door you were I thought you were
• Did you miss any?

Summary: The Senate State and Local Government Committee met and first took up Senate Bill 193, described as a simple measure to restore a wallet card for jailers to carry when outside the jail. The chair noted the fiscal impact was essentially zero, there were no questions, and the committee voted to pass the bill 9-0. The committee then heard Senate Bill 9, a proposal focused on the Teachers’ Retirement System (TRS). The sponsor argued TRS remains underfunded despite large state contributions, cited rising unfunded liability and negative cash flow, and said the bill is intended to standardize and limit what sick leave, personal leave, and annual leave can count toward retirement calculations. The bill would generally cap TRS retirement credit at 10 sick days and 2 personal days per year, prevent annual leave from being rolled into sick leave, require more uniform reporting and oversight from participating districts and agencies, and shift costs to districts that offer benefits beyond TRS limits. The sponsor also said the bill would add 30 maternity leave days, allow voluntary supplemental contributions for Tier Four teachers, and include a floor amendment directing the state auditor to audit TRS and report on agency leave policies. During the presentation, the sponsor emphasized fairness, transparency, and accountability, and used a hypothetical high-salary administrator to illustrate how leave payouts can increase retirement benefits and create additional unfunded liability. Senator Mills thanked the sponsor and said members had been working to understand the issue, but no committee action on Senate Bill 9 was completed in the portion provided.

Transcript Highlights:

• Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. The Senate Committee on...
• While you were speaking, we achieved a quorum, so will you please call the roll. Senators Laird?
• You know, back in, I believe it was 1996, we had what was called the Welfare to Work Program.
• If you turn the clock back before the submission... ...to our communities.
• But then will you get a call from our friends from the first panel at financing?

Committee: Senate Budget and Fiscal Review

Transcript Highlights:

• request early on in the you did your request early on in the year<00:10:15.440><c> before</c><00:10:15.839
• If I would before you we start &gt;&gt; Dr.
• If I would before you we start remember<00:13:41.440><c> we're</c><00:13:41.680><c> focusing</c><00:13
• Do you do you have those numbers that? Do you do you have those numbers with<00:28:49.679><c> you?
• Thank you, Mr. Chairman. Thank &gt;&gt; Okay. Thank you, Mr. Chairman. Thank you. you. you.

Summary: The committee first approved the minutes, then heard a lengthy presentation from the Department for Public Health on Kentucky’s rural health transformation plan and related budget questions. Commissioner John Langfeld said the state received a $212.9 million federal award, one of the larger awards nationally, and outlined five focus areas: maternal and infant health, integrated EMS/trauma response, behavioral health and substance use disorder, oral health, and chronic disease prevention with an emphasis on obesity and diabetes. He stressed that the effort is intended to be integrated, data-driven, and sustainable, and that the federal funds cannot be used for new construction, clinician salaries, research and development, EHR replacement, or to pay for currently billable services. He also said the program carries accountability requirements and that funds can be clawed back if milestones are not met. Members pressed for clarification on duplication with other budget requests, sustainability after the five-year funding period, and how success would be measured. Langfeld said he was not aware of any duplicate funding with the department’s additional budget requests and said the rural health funds were separate from those requests. He also said the program will be tracked through specific metrics and timelines, using both execution measures and outcome measures such as readmissions, with more rapid-cycle feedback to allow course correction. Representative Fleming raised concerns about possible overlap with navigator funding and asked for more detail on the budget breakdown; Langfeld said a detailed line-item budget had been prepared but was still awaiting final CMS approval before release, and that he would explore sharing more information once restrictions were lifted. The committee then heard from the Kentucky State Public Health Laboratory about a request for a new central lab expansion. The presenter described the current 35-year-old facility as outdated and constrained by aging infrastructure, obsolete equipment, deferred maintenance, and inadequate space, and said the lab performs critical work with no in-state alternative for many services, including newborn screening, select-agent and biosafety level 3 testing, animal necropsy for rabies, genetic sequencing, environmental and food safety testing, and response to emerging infectious diseases. The project is already in design phase C, expected to finish in mid-April, with construction funding sought at roughly $276 million on top of about $35 million already approved for design. Members asked about long-term operating costs, backup arrangements, and whether the current facility would remain in use; the presenter said the current lab would continue to be used by the department while other divisions move into vacated space, and that the lab has mutual-aid agreements with the Southeast Consortium and universities for contingency support. Finally, the Department for Community Based Services began its budget presentation on SNAP and relative caregiver issues. Commissioner Lisa Dennis and budget director Misty Sammons identified the governor’s recommended budget items tied to new federal requirements under HR1, including changes affecting payment error rates. The discussion was just beginning when the transcript ended.

Transcript Highlights:

• of course no thank you okay chart before of course no thank you okay so<00:28:54.000><c> let's</c><00
• you call it but um I forget exactly how you call it but we<02:04:52.119><c> were</c><02:04:52.320><c
• Mortgage rates right now are hovering; you can get different rates, but let's call it 7% now.
• </c> investment yeah if you want to dig into investment yeah if you want to dig into that<02:51:59.080
• Before the Great Recession, you can see the pre-Great Recession peak.

Summary: The meeting was a Ways and Means briefing opened by the vice chair, who introduced Jason Wong of the Federal Home Loan Bank of Boston to discuss the national and regional economy. Wong focused on inflation, asking why it had fallen from about 9% in 2022 to the 2%–3% range, and what that meant for monetary policy and the risk of an economic downturn. He said the Fed’s target is 2%, noted that recent PCE inflation was about 2.4% and core PCE about 2.7%, and described the ongoing debate over whether interest rates should stay tight or be lowered further to protect the labor market. Wong explained that the improvement in inflation has been driven largely by goods prices, especially durable goods such as cars, appliances, and furniture, as well as non-durable goods like food. He said supply-chain disruptions during the pandemic caused major price spikes in 2022, but those pressures have eased and many goods prices are now at or below the Fed’s target. He also referenced the New York Fed’s Global Supply Chain Pressure Index, saying it showed extreme pandemic-era disruptions that have since receded. The main remaining inflation problem, he said, is in services, especially housing. Wong broke services into rent of shelter and all other services, explaining that shelter is a large share of household budgets and that housing inflation has a lag because rent measures often reflect older lease terms rather than current market rents. He said monthly Zillow data suggest market rents have cooled and may eventually feed through to official inflation measures. Members asked several questions about the chart’s time scale, the treatment of real estate, property taxes, and utilities, and Wong clarified that housing costs are counted in services and that the slides would be shared digitally. No votes or formal actions were taken.