SEL business climate ratings place Idaho fourth, Washington 35th

PULLMAN — The state of Washington ranked 35th, 31 slots below neighboring Idaho, on a 2025 business climate ratings list completed by Schweitzer Engineering Laboratories.

Called the SEL Index of Freedom, the annual ratings are based on government efficiency, regulatory freedom and energy resiliency, according to a news release from SEL.

A total of 20 bills passed by the Washington state Legislature created new taxes or increased existing ones to address a projected $16 billion budget deficit, according to the index.

Washington ranks eighth for business failure rates over the past decade, according to the index that quoted the Washington Policy Center. A not-for-profit headquartered in Seattle, the center describes itself as an independent think tank that “promotes sound public policy based on free-market solutions.”

“The current climate is increasingly unfavorable, particularly for small manufacturers and technology firms,” according to the index.