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WashingtonHB 25232025-2026 Regular SessionHouseWALLET

Concerning the community reinvestment program.

Sponsored By: Kristine Reeves (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

New state fund backs community reinvestment

Beginning July 1, 2027, the state creates the Community Reinvestment Account in the treasury. Money comes from appropriations and transfers, and is spent only after appropriation. The Department of Commerce funds five areas: economic development, civil and criminal legal help, community violence prevention, reentry services, and agricultural and economic support for marginalized communities. In each two-year budget, every strategy gets at least 15% and no more than 60% of total funds. The Office of Equity and the Department can jointly recommend a different split to avoid unspent money or blocking community access.

Regular plan updates and independent review

The Office of Equity and the Department of Commerce update the Community Reinvestment Plan at least every five years, with the first update due in 2032. Updates use community-based research and include funding ideas, program rules, distribution, long-term benefits, and evaluation. A work group must deliver a transition plan by November 1, 2026, so a joint administrative framework is in place before July 1, 2027. An independent institute studies fund distribution and use, and reports to the legislature by June 30, 2027.

Wider grants for rare free services

Starting July 1, 2027, groups that offer a rare free specialized service can apply for funding statewide if fewer than five providers exist. For legal services with fewer than three free providers statewide, a non “by and for” group can get a grant. It must have a support letter from a by-and-for group, share up to 15% of the grant with them for outreach and oversight, and file yearly impact and client demographic reports.

Community-led grants and self-dealing ban

Starting July 1, 2027, grant awards happen with “by and for” community groups and follow the Governor’s tribal consultation order. Grant recipients may not pass funds to an officer who benefits, that officer’s family member, or a business the officer owns or runs. These rules center community voices and prevent self-dealing.

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Sponsors & Cosponsors

Sponsor

  • Kristine Reeves

    Democratic • House

Cosponsors

  • Brandy Donaghy

    Democratic • House

  • Edwin Obras

    Democratic • House

  • Lauren Davis

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Mia Gregerson

    Democratic • House

  • Natasha Hill

    Democratic • House

  • Sharon Tomiko Santos

    Democratic • House

  • Shaun Scott

    Democratic • House

  • Timm Ormsby

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 133 • No: 12

Senate vote • 3/4/2026

3rd Reading & Final Passage

Yes: 45 • No: 3 • Other: 1

House vote • 2/16/2026

3rd Reading & Final Passage

Yes: 88 • No: 9 • Other: 1

Actions Timeline

  1. Effective date 6/11/2026*.

    3/23/2026House

  2. Chapter 143, 2026 Laws.

    3/23/2026House

  3. Governor signed.

    3/23/2026legislature

  4. Delivered to Governor.

    3/6/2026legislature

  5. President signed.

    3/6/2026legislature

  6. Speaker signed.

    3/5/2026legislature

  7. Third reading, passed; yeas, 45; nays, 3; absent, 0; excused, 1.

    3/4/2026House

  8. Rules suspended. Placed on Third Reading.

    3/4/2026House

  9. Placed on second reading by Rules Committee.

    3/3/2026House

  10. Minority; without recommendation.

    3/2/2026House

  11. WM - Majority; do pass.

    3/2/2026House

  12. Passed to Rules Committee for second reading.

    3/2/2026House

  13. First reading, referred to Ways & Means.

    2/19/2026House

  14. Third reading, passed; yeas, 88; nays, 9; absent, 0; excused, 1.

    2/16/2026House

  15. Rules suspended. Placed on Third Reading.

    2/16/2026House

  16. Floor amendment(s) adopted.

    2/16/2026House

  17. 2nd substitute bill substituted.

    2/16/2026House

  18. Rules Committee relieved of further consideration. Placed on second reading.

    2/12/2026House

  19. Minority; do not pass.

    2/9/2026House

  20. APP - Majority; 2nd substitute bill be substituted, do pass.

    2/9/2026House

  21. Referred to Rules 2 Review.

    2/9/2026House

  22. APP - Executive action taken by committee.

    2/9/2026House

  23. Referred to Appropriations.

    2/4/2026House

  24. Minority; do not pass.

    2/3/2026House

  25. TEDV - Majority; 1st substitute bill be substituted, do pass.

    2/3/2026House

Bill Text

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