Update changelog and version for release 1.3.0 (#388)

diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4567ed3..ef9c469 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,26 @@
+Release 1.3.0
+
+**New Features**
+-   Added `dicts.omit` and `dicts.pick` (#304)
+-   Added `expand_template` rule (#330)
+-   Added `subpackages` module (#348)
+-   Added `copy_directory` rule (#366)
+-   Added `bzlmod` support (#385)
+
+**Incompatible Changes**
+-   `native_binary` and `native_test` now use symlinks instead of copying, if
+    the OS supports it (#340)
+-   `native_binary` and `native_test` now build in target configuration instead
+    of host configuration (#341)
+-   `copy_file` no longer adds non-executables to `default_runfiles` (#326)
+
+**Contributors**
+
+Alex Eagle, Alexandre Rostovtsev, Barry McNamara, Derek Cormier, Fabian
+Meumertzheim, Geoffrey Martin-Noble, hchsiao, Kevin Kres, nickgooding,
+Vertexwahn, Vinh Tran
+
+
 Release 1.2.1
 
 Bugfix release: fixes build failure with --incompatible_disallow_empty_glob
diff --git a/MODULE.bazel b/MODULE.bazel
index 6955960..698c698 100644
--- a/MODULE.bazel
+++ b/MODULE.bazel
@@ -1,7 +1,7 @@
 module(
     name = "bazel_skylib",
     compatibility_level = 1,
-    version = "1.2.1",
+    version = "1.3.0",
 )
 
 register_toolchains(
diff --git a/version.bzl b/version.bzl
index 324adb5..70a04d6 100644
--- a/version.bzl
+++ b/version.bzl
@@ -13,4 +13,4 @@
 # limitations under the License.
 """The version of bazel-skylib."""
 
-version = "1.2.1"
+version = "1.3.0"